MTD quarterly updates, deadlines and corrections

Update periods and deadlines

How cumulative updates came in

The original design had standalone three-month updates. The Small Business Review outcome, published on 22 November 2023, changed this: each update became a cumulative total of income and expenses for the tax year to date. The Income Tax (Digital Obligations) Regulations 2026 set the periods in law, with an election for calendar quarters.

HMRC's quarterly updates guidance, updated 7 September 2026, says each update covers the start of the tax year to the end of the update period, so records can be corrected without resending earlier updates.

What an update contains

• Totals for each income and expense category for each self-employment and property business. HMRC does not receive individual records such as receipts or invoices (HMRC: send quarterly updates).
• A separate update for each business. HMRC's toolkit notes that each separate business needs its own submission.
• An update even when nothing happened. A client with no income or expenses in the period must still send it.
• The categories used in Self Assessment (HMRC: create digital records). With turnover under £90,000 a client can use simpler categories, and once turnover reaches £90,000 every record for that source must be categorised in full from the start of the tax year.
• Jointly let property expenses only if the client chooses. If they leave them out, they report them after the end of the tax year.

Correcting an update

Correct the digital record, then send the next update. For example, a landlord's first update shows £6,000 of rent and £1,400 of expenses. In September the agent finds a £300 repair bill coded to the wrong year. The record is corrected, and the second update, covering 6 April to 5 October, shows cumulative expenses including the £300. The first update is left as it was.

After the fourth update, HMRC says the client may need to resend the fourth update to change the records, to add joint property expenses or to claim Rent-a-Room relief. Tax adjustments come after that and before the tax return. See the final declaration.

Where records are kept in a spreadsheet, the correction is made in the spreadsheet and then linked across to the bridging software again (HMRC: create digital records).

Timing rules

Earliest sending

Up to 10 days before the end of the period, if no further transactions are expected (HMRC: send quarterly updates).

Records

Made before the update is sent or the deadline passes, whichever is first (HMRC: create digital records).

2026 to 2027

No penalty points for late quarterly updates (HMRC: penalties).

From 2027 to 2028

One penalty point per missed deadline, with a £200 penalty at 4 points.

Before the tax return

All quarterly updates must be sent before the return can be submitted (HMRC: send quarterly updates).

Questions