How to Submit an MTD Quarterly Update (Step by Step)

Quick Answer

A quarterly update is a cumulative summary of income and expense category totals per business sent through HMRC-recognised software — not a full tax return and not a tax payment.

This walkthrough assumes you already use (or plan to use) spreadsheet bridging or similar MTD software. For the policy background, see MTD quarterly updates explained.

Before you start

Gather:

Digital records for the tax year to date (bank exports, spreadsheet, or accounting system).
Your quarter end date (standard tax-year quarters vs calendar quarters — see deadlines).
Category totals for each income source (sole trade, UK property, etc.) — not every individual receipt unless your method requires it.
Confirmation that prior quarters for this year are already submitted (if not Q1).

Step 1 — Reconcile the period

Bring income and expenses up to the quarter end date in your records.
Split figures by HMRC categories (e.g. turnover, cost of goods, premises, travel).
For cumulative reporting, your Q2 totals must include everything from 6 April through your Q2 end — not July–September alone.

If you use a spreadsheet, map one row or sheet per category and one column per quarter end so bridging software can read stable cell references.

Step 2 — Check digital links

Data must flow electronically from records to submission. Acceptable: export from bank to sheet, or API from sheet to bridging tool. Not acceptable: retyping totals from paper or a PDF into HMRC’s old web forms.

Step 3 — Open your MTD software

Sign in to your bridging or accounting product.
Select the correct tax year and business (each trade/property may be separate).
Choose Submit quarterly update (wording varies by product).

Step 4 — Review cumulative figures

The software should show year-to-date totals for each category. Compare to your spreadsheet:

| Check | Why it matters | | --- | --- | | Period end date matches the quarter | Wrong period = wrong cumulative position | | Income equals your reconciled turnover/rents | HMRC tests category totals | | Expenses are plausible and categorised | Reduces enquiry risk | | Prior quarter cumulative + new period = current total | Catches formula errors |

If something is wrong, fix the records first, then refresh the submission screen.

Step 5 — Submit to HMRC

Confirm you are not making a final declaration (that is year-end only).
Submit through the software API.
Save the confirmation reference and a PDF or screenshot if your product provides one.

You may submit up to 10 days early if the quarter’s figures are complete. Nil returns are mandatory when there is no activity — do not skip a quarter.

Step 6 — After submission

HMRC does not calculate final tax from quarterly updates alone; in-year estimates may appear but are indicative.
If you discover an error next month, correct it in the next quarterly update with revised cumulative totals.
Note the next deadline (standard: 7 Aug / 7 Nov / 7 Feb / 7 May pattern).

Spreadsheet users (Abridge-style flow)

Maintain the workbook as your digital record.
Map categories once per business.
At quarter end, refresh linked figures in the add-in or bridge.
Review cumulative totals → submit → store receipt.

Download our free MTD spreadsheet template if you are starting from scratch.

Agents submitting for clients

Ensure ASA authorisation and MTD sign-up are complete for the client.
Agree who submits each quarter (main vs supporting agent).
One combined update per period per client when multiple firms are involved.

Penalties reminder

Missing a quarterly deadline adds one penalty point (separate from VAT points). April 2026 joiners get a 2026/27 grace on late quarterly points only — still file on time where possible.