The first quarter and deadlines
The first update period runs from 6 April to 5 July. You must send this update by 7 August. This is the first of four updates you must send each year.
Each update is a summary of your income and expenses for that period, not a full tax return. You can send the update from the end of the period up to the deadline. If you expect no further transactions, you can send it up to 10 days before the period ends.
You must send an update even if you had no income and no expenses during the period.
- Period to 5 July: due 7 August
- Period to 5 October: due 7 November
- Period to 5 January: due 7 February
- Period to 5 April: due 7 May
Moving your records across
MTD requires digital records. A digital record is a record of income or an expense created and stored in compatible software. You cannot simply write numbers into a spreadsheet cell and then type them into another cell or product.
If you use more than one product, the records must be digitally linked. This means using a formula, an automated transfer, or importing and exporting files like XML or CSV. You cannot cut and paste data between systems.
Keep digital records for at least 5 years after the 31 January submission deadline for the tax year. This is the same retention period as Self Assessment.
How penalties change
For the 2026-27 tax year, there are no penalty points for missing a quarterly update deadline. However, you must still send the updates and keep digital records.
Penalty points still apply to the tax return deadline. If you miss a submission deadline, you get one penalty point. The threshold is 4 points. Once you reach 4 points, you face a 200 pound penalty, and a further 200 pound penalty each time another deadline is missed.
Late payment penalties are separate. In the first year of the new penalties, if you are 16 to 30 days late, the penalty is 3% of the tax owed at day 15, or no penalty in the first year. If you are 31 days or more late, it is 3% at day 15 and 3% at day 30, plus an annual rate of 10% charged daily from day 31.
The final declaration
After the tax year ends, you submit a final declaration. This is similar to the Self Assessment tax return but is submitted through your software. It confirms your total income and expenses for the year.
The fourth quarterly update may need resending if you claim Rent-a-Room relief after the tax year ends or have joint property expenses. This ensures the totals are correct before you submit the final declaration.
You pay any tax owed by 31 January. This is the same deadline as before, but the process of getting to that number involves four updates rather than one annual calculation.