MTD for Income Tax — quarterly updates explained
At a glance
- A quarterly update is a summary of income and expenses for a three-month period
- Landlords submit four quarterly updates per tax year
- A quarterly update is not a tax payment — it is a record of your figures
- Submissions must be made through HMRC-recognised software
- Late submissions are subject to HMRC's points-based penalty system
A quarterly update is the core submission requirement under Making Tax Digital for Income Tax. Instead of one annual tax return, you submit a summary of your rental income and expenses four times a year. This guide explains what a quarterly update is, what it contains, and how to submit one. Reviewed May 2026.
What a quarterly update is
A quarterly update is a summary of your rental income and expenses for a three-month period. You submit it to HMRC directly through MTD-compatible software.
A quarterly update is not:
- a tax payment
- a final, irrevocable figure
- a replacement for your end-of-year declaration
It is a regular progress report that lets HMRC track your income position through the year. You can amend a submitted quarter if you discover an error.
What it contains
A quarterly update for property income includes:
- Total rental income received in the quarter
- Total allowable expenses by category in the quarter
- Net profit or loss figure for the quarter (calculated from the above)
The expense categories follow HMRC’s property income categories — repairs and maintenance, finance charges, insurance, letting agent fees, and so on. TenancyVault maps plain-English category names to the correct HMRC codes automatically.
When quarterly updates are due
The four quarters align to the tax year (6 April to 5 April):
| Quarter | Period | Submission deadline |
|---|---|---|
| Quarter 1 | 6 April – 5 July | 5 August |
| Quarter 2 | 6 July – 5 October | 5 November |
| Quarter 3 | 6 October – 5 January | 5 February |
| Quarter 4 | 6 January – 5 April | 5 May |
HMRC may revise these deadlines as MTD rolls out — always check the latest guidance on GOV.UK.
How to submit a quarterly update
- Keep digital income and expense records throughout the quarter in your MTD software
- At the end of the quarter, review your totals
- Connect your HMRC account if you have not already done so
- Submit the quarterly update through your MTD software
In TenancyVault, you review your quarter records, check the income and expense totals, and submit directly to HMRC from within the app.
What happens after you submit
- HMRC receives the update and may calculate an indicative tax position based on the figures so far
- You can retrieve the HMRC calculation feedback to see how HMRC has processed your submission
- The quarter is marked as submitted — you can amend it later if needed
- You repeat the process for the next quarter
What is not included in a quarterly update
Quarterly updates cover your in-year income and expenses. They do not include:
- Final declaration (end-of-year process)
- BSAS (Basis of Self Assessment Adjustments) — not applicable to most landlords
- Capital gains, pension contributions, or other income sources outside property
- Adjustments for residential finance costs (mortgage interest relief) — these are handled at the end-of-year stage
Common mistakes
- Submitting before reviewing all transactions — import and review bank statements before submitting so your figures are accurate
- Missing a deadline — each missed submission earns a penalty point; four points in a period triggers a £200 penalty
- Mixing personal transfers into expenses — personal transfers should be excluded from HMRC expense totals and kept separate in your records
How TenancyVault helps
TenancyVault keeps a running quarter summary as you add income and expense records. When the quarter ends, you review your totals, check for missing or incorrect entries, and submit directly to HMRC. If you discover an error after submitting, you can amend and resubmit from within the app.
Not legal or tax advice. This guide is for information only. Consult a qualified accountant or tax adviser for guidance on your specific situation.
Related guides
Making Tax Digital for landlords explained
What Making Tax Digital for Income Tax means for landlords in England — who it applies to, when it starts, what you need to do, and how it changes your tax obligations.
Quarterly deadlines for landlords under Making Tax Digital
The four quarterly update deadlines for England landlords under MTD for Income Tax, what happens if you miss a deadline, and how to stay on top of the filing schedule.
How landlords connect HMRC software
How to connect your HMRC account to MTD-compatible software as a landlord — what the authorisation process involves, what HMRC syncs, and what you can do once connected.
Landlord expense categories for HMRC
The allowable expense categories for UK landlords under HMRC's property income rules — what each category covers, what is not allowed, and how categories work in MTD software.