HMRC have provided guidance on Quarterly update period under Making Tax Digital (MTD) for Income Tax.
Below are answers to some of the most common questions.
1. What are the quarterly update period options under Making Tax Digital (MTD) for Income Tax?
There are two types of quarterly update periods:
- Standard update periods – aligned to the tax year (6 April to 5 April).
- Calendar update periods – aligned to calendar months (1 April to 31 March).
You can choose the most suitable option based on how you maintain your accounting records.
2. What is a standard update period?
Standard update periods follow the tax year and use the following cumulative reporting dates:
| Update Period | Filing Deadline |
|---|---|
| 6 April – 5 July | 7 August |
| 6 April – 5 October | 7 November |
| 6 April – 5 January | 7 February |
| 6 April – 5 April | 7 May (following tax year) |
3. What is a calendar update period?
Calendar update periods align with accounting records maintained on a month-end basis.
| Update Period | Filing Deadline |
|---|---|
| 1 April – 30 June | 7 August |
| 1 April – 30 September | 7 November |
| 1 April – 31 December | 7 February |
| 1 April – 31 March | 7 May (following tax year) |
4. Are the filing deadlines different for standard and calendar update periods?
No
Although the reporting periods differ, the filing deadlines are exactly the same for both methods:
- 7 August
- 7 November
- 7 February
- 7 May (following tax year)
5. Are quarterly updates cumulative?
Yes
Each quarterly update includes information from the beginning of the tax year up to the end of the relevant update period. This means you are not reporting only the latest three months.
For example:
- First update: 6 April to 5 July
- Second update: 6 April to 5 October
- Third update: 6 April to 5 January
- Fourth update: 6 April to 5 April
This cumulative approach allows corrections to be reflected in later submissions without resubmitting previous updates.
6. Can you correct errors from an earlier quarterly update?
Yes
Because quarterly updates are cumulative, any corrections made to your digital records will be reflected in the next quarterly update covering the longer period. You do not need to resubmit earlier updates.
7. Can you change your update period during the tax year?
No
Once you have submitted a quarterly update for a tax year, you cannot switch between standard and calendar update periods during that same tax year. Any change must be made before the first quarterly submission of a new tax year.
8. Does choosing calendar update periods affect your tax year?
No
Choosing calendar update periods only changes the dates covered by your quarterly updates. Your tax obligations and filing deadlines remain the same.
The above information can be accessed from HMRC’s web page Use Making Tax Digital for Income Tax - Send quarterly updates - Guidance - GOV.UK under the section ‘Update periods and deadlines’.
