Your MTD quarterly update has been submitted. So, what happens next?
For those who joined Making Tax Digital for Income Tax from April 2026, submitting that first quarterly update is an important milestone.
But it is only one part of the new MTD process.
Once your update has been submitted, there is no separate quarterly tax return to complete. Instead, you continue keeping your digital records up to date, ready for your next quarterly update.
Here is what happens next.
Your quarterly update is not a tax return
This is an important distinction.
Your quarterly update provides HMRC with summary information from the income and expense records held in your MTD-compatible software.
It is not a full tax return and you do not need to make all of your year-end accounting or tax adjustments before submitting each update.
Essentially, you are keeping HMRC updated with information from your digital records during the tax year. Your final tax position is dealt with later.
You may see an estimated tax bill
After submitting a quarterly update, you may be able to see an estimate of your tax liability through your software or HMRC’s online services.
This can be useful for understanding how your tax position is developing and planning ahead for future payments.
However, the figure is still an estimate.
Your final tax calculation may include information and adjustments that are not included within your quarterly updates. The amount shown during the year should therefore not be treated as your final tax bill.
Keep your bookkeeping up to date
Once one quarterly update has been submitted, you move into the next reporting period.
That means continuing to record your business income and expenses digitally.
If something has been recorded incorrectly, your digital records should be corrected as soon as possible.
Regular bookkeeping can make this much easier. Instead of approaching each quarterly deadline with several months of records to organise, keeping your accounts current means much of the information needed for your next update is already in place.
If NDA looks after your bookkeeping, we can help make sure your records remain organised and your accounting software is kept up to date throughout the year.
When is the next quarterly update?
The deadlines are:
7 August
First quarterly update
7 November
Second quarterly update
7 February
Third quarterly update
7 May
Fourth quarterly update
Your MTD-compatible software uses the digital records maintained throughout each period to provide the information required for your quarterly update.
Once one is submitted, you continue into the next period.
What happens after the fourth quarterly update?
The fourth update does not replace your annual tax return.
Once all four quarterly updates have been submitted, HMRC will have received the relevant summaries of the income and expenses reported through MTD during the year.
Your accounts can then be reviewed and the appropriate accounting and tax adjustments made before your final tax position is calculated and your tax return submitted.
MTD therefore changes the way information is recorded and reported throughout the year, but year-end accounts and tax work remain an important part of the process.
A slightly different first year
There is an additional point to remember if you entered MTD for Income Tax in April 2026.
Your 2025/26 Self Assessment tax return is still due by 31 January 2027 under the existing Self Assessment process.
At the same time, you will already be keeping digital records and submitting quarterly updates for the 2026/27 tax year.
Your first tax return covering a full year within MTD will relate to 2026/27 and will be due by 31 January 2028.
For a short period, it may therefore feel as though the old and new requirements overlap. This is part of the transition into MTD rather than an ongoing duplication of your tax obligations.
How can North Devon Accounts help?
Making Tax Digital is about more than meeting four quarterly deadlines.
Good digital records need to be maintained throughout the year, and the information held in your accounting software needs to remain accurate and useful.
North Devon Accounts can help you understand what MTD means for your business and make sure the right systems are in place. We can also support you with your bookkeeping and quarterly submissions before completing the necessary year-end accounting and tax work.
If you already use accounting software, we can help make sure you are using it effectively and that your records meet the requirements of MTD.
Keep your accounts moving between deadlines
Submitting your quarterly update does not mean putting your accounts aside until the next deadline approaches.
Keeping your records current can make each quarterly update easier while giving you a more useful picture of your business throughout the year.
If you are unsure what you need to do after your latest quarterly update, or you would like help preparing for Making Tax Digital, speak to the team at North Devon Accounts. We can help you understand what comes next and make sure your accounts are ready for it.
