What your first update covers
Whichever wave brings you into MTD for Income Tax, your first quarterly update covers the period 6 April to 5 July of your first MTD tax year and is due by 7 August that year. (The first wave's update covered 6 April 2026 to 5 July 2026, due 7 August 2026.) You will then file three more updates that year, plus a tax return after the tax year ends.
What to report
A quarterly update is a summary, not a full tax return. You report:
- Total business or property income for the quarter
- Total allowable expenses, grouped into HMRC's categories
- Separate figures for each trade and for property income, if you have both
You don't claim reliefs or allowances yet — those are handled once a year at the tax return, so quarterly figures can be provisional.
How to submit it
- Make sure your records for the quarter are complete and categorised
- Open your MTD-compatible software (or spreadsheet + bridging software)
- Review the quarter's totals against your bank
- Submit the update to HMRC through the software before 7 August
- Save the confirmation for your records
It doesn't have to be perfect
This is the single most reassuring thing to understand about your first update, and it takes the pressure off. Quarterly updates are cumulative — each one restates the year to date — and they are estimates, not a final return. If you get a figure slightly wrong, or a receipt turns up late, you simply correct it in the next quarter or at the tax return. Nothing is set in stone until year end, and no tax is calculated or payable at this stage. So submit your best, honest numbers by 7 August rather than delaying to chase perfection.
What counts as income and expenses
Your software will group figures into HMRC’s categories, but broadly you are capturing:
- Income — everything the business took in during the quarter: invoices paid, card and cash sales, or rent received.
- Expenses — allowable costs such as stock and materials, travel and vehicle costs, premises, phone and internet, insurance, and professional fees.
If you run more than one trade, or a trade and property, keep each source separate so its figures report correctly. Landlords report rent and running costs here; the mortgage finance-cost adjustment is applied later at the tax return, not in the quarterly figures.
Standard or calendar quarters
The standard first quarter runs 6 April to 5 July (due 7 August). If it suits your bookkeeping better, you can elect to use calendar quarters— so your first would run 6 April to 30 June. The submission deadlines stay the same (7 August, 7 November, 7 February, 7 May); only the period end dates shift. Decide this before your first submission.
Common first-update mistakes to avoid
- Leaving software set-up too late — sign up and connect it well before 7 August, because identity or authorisation steps can take days.
- Not reconciling to the bank — a quick check against your statement catches missed income and duplicated expenses.
- Retyping totals by hand — MTD requires a digital link; let the software carry the figures through.
- Forgetting a second income source — if you have a trade and a rental, both need reporting.
Prefer we handle it?
We prepare and file quarterly updates for £75 + VAT each, and can register you for MTD first if needed (£95 + VAT). Call 0114 327 1480 or email shjenquiry@msc-g.com.