MTD quarterly updates, explained

A quarterly update is a summary, not a tax return. Your software adds up your digital records into category totals and sends them to HMRC. There are four a year for each business you have.

What is sent

Your update contains totals for each income and expense category, using the same categories as Self Assessment. The exact list is in HMRC’s quarterly update direction. For UK property it splits Total rent from Other income from property and has its own Travel expenses line. HMRC does not receive individual receipts or invoices. You don’t need to make accounting or tax adjustments before sending. Source: GOV.UK.

Each update covers the year so far

Updates are cumulative: each one runs from the start of the tax year (6 April) to the end of the latest period. Your third update, for example, covers 6 April to 5 January. If you spot a mistake, you correct the record and it is picked up in the next update.

One update per business, not per property

All your UK rental properties are legally one “UK property business”, so they go in one UK property update, including your share of jointly let properties. Foreign properties form a separate foreign property business. If you’re also self-employed, each trade has its own records and updates. Source: GOV.UK digital records.

Standard or calendar periods?

• Standard (the default): periods end 5 July, 5 October, 5 January, 5 April.
• Calendar: periods end 30 June, 30 September, 31 December, 31 March. Use these if your accounting period runs 1 April to 31 March.

Deadlines are the same either way: 7 August, 7 November, 7 February, 7 May. You must choose calendar periods in your software before your first update, and you can’t change for the rest of that tax year once you’ve sent one. In your first MTD year calendar periods start on 1 April. If you switch period type in a later year, that year’s updates start on 6 April (moving to calendar) or 1 April (moving back to standard), under the Income Tax (Digital Obligations) Regulations 2026.

Things landlords often miss

• Nil updates: if you had no income or expenses in a period, you still have to send the update.
• Early sending: you can send up to 10 days before the period ends if you don’t expect any more transactions.
• More often is allowed: you can send more frequent updates, but each must cover the full period from 6 April.
• Joint lets: you can send income only for jointly let property, then add those expenses by resending update four before your return.
• Resending update four: you can resend your fourth update to fix errors, add joint-property expenses or record Rent-a-Room income, before making tax adjustments.

You get a tax estimate

After each update, HMRC provides an estimate of your tax for the year to date in your software and HMRC online account. It includes information HMRC already holds, such as PAYE income. It will be less accurate if you have other income you haven’t added.

Late updates

No penalty points apply for late quarterly updates in the 2026-27 tax year. After that, each late update earns a point, and 4 points means a £200 penalty. Details in our deadlines guide.