What is a quarterly update?
A quarterly update is a summary of your self-employment income and expenses for a three-month period, sent to HMRC through your MTD software. Under Making Tax Digital for Income Tax, sole traders submit four of these per year instead of a single annual tax return.
The key thing to understand: a quarterly update is not a tax return. You are not calculating anything, you are not making a payment, and you are not finalising your tax position. You're simply telling HMRC what came in and what went out over the quarter.
Quarter 1 at a glance: 6 April to 5 July 2026. Submission deadline: 7 August 2026.
What you need to include
Your quarterly update contains two things:
- Total income: all the money you received from clients or customers between 6 April and 5 July. Under cash basis accounting, that means income when you received it; under accruals, when it was earned.
- Expenses by category: your allowable business costs for the quarter, grouped by type — things like office costs, travel, equipment, professional fees, and advertising.
That's it. You submit totals, not individual transactions. You don't attach invoices, receipts, or bank statements. You keep those records digitally yourself (HMRC can ask for them if they open an enquiry), but they are not part of the submission.
What a quarterly update is not
Because this is a new process for most sole traders, it's worth being explicit:
- It is not a tax return
- It does not calculate your tax bill
- It does not trigger a tax payment
- It does not include personal income, allowances, or reliefs
- It is not your final word on the year — figures can be adjusted later
All of that comes at the end of the year, when you complete your Final Declaration. In August, you are simply reporting Q1 income and expense totals.
What about payment on account?
Your quarterly update submission has no bearing on any tax payments you may need to make right now. However, some sole traders are due to make a payment on account to HMRC at this time of year.
Payments on account are advance payments towards your tax bill, calculated from your previous year's Self Assessment return. The second payment on account for 2025/26 is due 31 July 2026. If HMRC has already written to you about this, it is entirely separate from your MTD quarterly update — it is not triggered by your Q1 submission, and submitting your Q1 update does not affect it.
The short version: submitting your Q1 quarterly update will not cost you anything and will not affect your July payment on account. They are two completely separate obligations.
How to submit
Quarterly updates must be submitted through HMRC-recognised MTD software. You cannot file directly on the HMRC website.
If your software is connected to your bank account, your transactions from the quarter will already be there. You review the income and expense totals your software has categorised, make any corrections, and submit. The whole process typically takes a few minutes once your records are in order.
Not signed up yet? You need MTD software before you can submit. With 7 August approaching, you have time to get set up — but the closer to the deadline you leave it, the more stressful it gets.
The full quarterly schedule for 2026/27
| Quarter | Period covered | Submission deadline |
|---|---|---|
| Quarter 1 | 6 April – 5 July 2026 | 7 August 2026 |
| Quarter 2 | 6 July – 5 October 2026 | 7 November 2026 |
| Quarter 3 | 6 October 2026 – 5 January 2027 | 7 February 2027 |
| Quarter 4 | 6 January – 5 April 2027 | 7 May 2027 |
Already using Bart? You're ready to go.
Bart has been tracking your transactions since 6 April. Your Q1 income and expenses are already categorised. Open the app, review your totals, and submit — your first MTD quarterly update can be done in minutes.
Try Bart freeFrequently asked questions
What period does MTD Quarter 1 cover?
Quarter 1 covers 6 April to 5 July 2026. It is the first quarterly period of the 2026/27 tax year under Making Tax Digital for Income Tax.
When is the deadline for the first MTD quarterly update?
The deadline to submit your Quarter 1 update is 7 August 2026. Quarter 1 ended on 5 July, so you have just over a month to submit your figures.
Do I need to pay tax when I submit my quarterly update?
No. Submitting a quarterly update does not trigger a tax payment and does not produce a tax bill. Your tax liability is only calculated at the end of the year when you complete your Final Declaration. The only payment you might need to make around this time is a payment on account if HMRC has already requested one — that is separate from your quarterly update submission.
What do I actually send to HMRC in a quarterly update?
Just a summary: your total income and your expenses broken down by category for the quarter. You do not send invoices, receipts, or bank statements. Your MTD software handles the submission; you review and confirm the totals.
What happens if I miss the 7 August deadline?
You'll receive a penalty point from HMRC. Accumulate four points and a £200 fine is triggered. The system is designed to be lenient for one-off mistakes, but it pays to stay on top of deadlines from the start.