The most common misconception about Making Tax Digital is that a quarterly update is a mini tax return. It isn't — and understanding what it actually is makes the whole system feel far less daunting.
What a Quarterly Update Actually Contains
A quarterly update is a summary of your income and expenses by category for that three-month period — not a full tax calculation, and not itemised, transaction-level detail sent to HMRC. You report totals: total income, total expenses by category (such as travel, materials, or professional fees). Your underlying records need to be kept digitally at the transaction level in your software, but what actually gets submitted each quarter is the category totals your software calculates from those records.
The Four Deadlines
The standard quarterly update deadlines are 7 August, 7 November, 7 February, and 7 May, each covering the preceding three-month period. These are fixed calendar deadlines that apply the same way every year, which makes them easier to plan around once you know them, unlike the old single annual deadline that could feel like it arrived from nowhere.
The End of Period Statement
After your fourth and final quarterly update for the tax year, you submit an End of Period Statement for each business or property source you have. This is where you finalise the figures for the full year, including any adjustments that don't fit neatly into a single quarter — things like annual capital allowances calculations.
The Final Declaration
The final declaration is the genuine replacement for your old Self Assessment submission. It pulls together your finalised business and property figures from the End of Period Statements, plus any other income you have — employment income, savings interest, dividends — that isn't part of the MTD quarterly reporting itself, and calculates your actual tax liability for the year.
Why the Distinction Between Records and Submissions Matters
Because quarterly updates only require category-level totals, some people assume they can keep looser records than before and just estimate the categories each quarter. This is a mistake — your digital records still need to be accurate and complete at the transaction level, because your End of Period Statement and final declaration both rely on those same underlying records being correct, and HMRC can request the detail behind any total you've submitted.
Frequently Asked Questions
Can I submit a quarterly update early if my records are ready?
Generally yes, though check your specific software's process — the deadline is the latest date, not the only date, you can submit.
What if I have both a sole trader business and rental property?
You submit separate quarterly updates and a separate End of Period Statement for each income source, combined into a single final declaration covering all your income for the year.
Where to Go From Here
The Making Tax Digital Survival Blueprint includes a full submission calendar with every deadline mapped out, plus templates for tracking your category totals each quarter so nothing gets missed.
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This article is for educational and informational purposes only and does not constitute accounting or tax advice. HMRC's specific submission requirements can change — always verify current requirements directly with HMRC.