{"id":26364,"date":"2026-07-29T15:31:31","date_gmt":"2026-07-29T14:31:31","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?post_type=sage_glossary&p=26364"},"modified":"2026-08-07T09:38:39","modified_gmt":"2026-08-07T08:38:39","slug":"what-are-mtd-quarterly-updates","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-are-mtd-quarterly-updates\/","title":{"rendered":"What are quarterly updates?"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tGlossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tWhat are quarterly updates?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t
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However, it has a special meaning in the context of Making Tax Digital<\/a> (MTD) for Income Tax. Providing quarterly reports to HMRC about your income and expenditure \u2014 known as quarterly updates in the language of MTD \u2014 is a legal requirement for those who fall within scope.<\/p>\n\n\n\n

What counts as a quarterly update?<\/h2>\n\n\n\n

In return for providing each update, HMRC will provide an estimate of your tax bill.<\/p>\n\n\n\n

A quarterly update is a running summary, not a final calculation. It’s generated and sent through MTD-compatible software<\/a> \u2014 typically the totals for your income and expenses for that period, broken down by category, or as a simplified three-line summary if your turnover is below the VAT registration threshold.<\/p>\n\n\n\n

Do I need to submit more than one quarterly update?<\/h2>\n\n\n\n

Yes, if you have more than one qualifying income source. You’ll need a separate quarterly update for each sole trader business you run, and a separate update for your property income (with foreign property reported separately from UK property).<\/p>\n\n\n\n

For example, if you run a landscaping business as a sole trader and also let out a rental property, you’ll need to submit two quarterly updates every three months: one covering your landscaping income and expenses, and one covering your rental income and expenses. That’s eight updates a year in total, rather than four.<\/p>\n\n\n\n

When are quarterly updates due?<\/h2>\n\n\n\n

The quarterly updates should be provided across the year following April each year, as follows:<\/p>\n\n\n\n