Guide

MTD quarterly updates: the periods, the deadlines, what to send

Making Tax Digital for Income Tax · UK

Once Making Tax Digital for Income Tax applies to you, the year gets four small deadlines instead of one big one. Here is the calendar, what each update actually contains, and what happens if you miss one.

The four periods and their deadlines

The default quarters follow the tax year, and each update is due by the 7th of the month after the quarter ends:

The date ranges are not a typo: updates are cumulative. Each one covers the year so far, not just the last three months. That is quietly good news, because a mistake in an earlier update is corrected simply by getting the figures right in the next one.

If tax-year quarters feel awkward, you can elect calendar quarters instead (starting 1 April), which suits people whose records already run monthly.

What an update actually contains

Totals, not paperwork. A quarterly update is your income and expenses for the period, summarised by category, sent through compatible software. No receipts, no narrative, no tax calculation to perform yourself. If your records are tidy, an update is minutes of confirming, not days of accounting.

After the final quarter, you finish the year with a final declaration: adjustments, allowances, any other income, and confirmation that the figures are complete. That step replaces the old Self Assessment return for this income.

When do you actually pay tax?

The payment rhythm does not change: the balance is still due by 31 January, with payments on account (if they apply) in January and July. Quarterly updates inform HMRC, and HMRC shows you an estimate as the year builds, but they do not bring tax payments forward. Nothing is owed on 7 August just because an update was.

If you miss one

Late submissions work on a points system rather than instant fines: each missed deadline is a point, and at four points you get a £200 penalty, with the points expiring after a clean period. Late payment penalties are separate and only bite when actual payment deadlines are missed. One slip is not a catastrophe, but a habit of slips gets expensive.

Making the quarter an hour, not a weekend

The deadline is not the hard part. The hard part is that four times a year, someone has to turn a bank statement into categorised business records. That is the bit to solve with software that already knows what a musician's statement looks like.

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Common questions

What happens if I miss a quarterly update?

You get a penalty point. Points only convert to money at four, when a £200 penalty applies, and they expire after a sustained period of filing on time. Late payment is penalised separately, and only when a payment deadline is actually missed.

Do quarterly updates mean I pay tax quarterly?

No. Updates are information, not payment demands. The tax itself stays on the existing schedule: balance by 31 January, plus payments on account in January and July if they apply to you. HMRC will show a running estimate so January stops being a surprise.

Can my accountant send the updates for me?

Yes. Agents can submit quarterly updates and the final declaration on your behalf, from records you keep or that your software prepares. Many musicians keep the records themselves and hand their accountant a clean export for filing.

I got a figure wrong in the last update. Do I resubmit it?

Updates are cumulative, so you correct an earlier mistake by including the right year-to-date figures in your next update. The year is finalised properly at the final declaration.

This guide is general information for working musicians, not tax advice. Thresholds, dates and rules are set by HMRC and can change. Check the current position on GOV.UK or speak to a qualified accountant before making decisions about your own tax.