Ever since MTD went live in April we've had the same conversation several times a week. Someone rings, worried, because they've heard they now pay tax four times a year.
They don't. Nobody does. Let's take it apart.
What an update contains
A quarterly update is a summary of your income and expenses for the year so far, sent to HMRC through software. Totals, not transactions. No tax calculation, no payment demand attached.
What it's for
HMRC wants the self-employed keeping records as they go instead of reconstructing a year every January. The updates are the proof that's happening. As a side effect, you get a running picture of your own profit through the year, which frankly most sole traders have never had.
What happens if a figure is wrong
Nothing dramatic. Updates are cumulative, so each one supersedes the last, and nothing is final until the year-end declaration. A miscoded expense in July gets corrected in the October update. This is why we tell clients not to lose sleep over individual quarters.
When you actually pay tax
Same dates as always: 31 January, and payments on account on 31 July where they apply. MTD moved the paperwork, not the money.
The deadlines for 2026/27
- Quarter 1, 6 April to 5 July: due 7 August 2026
- Quarter 2, 6 July to 5 October: due 7 November 2026
- Quarter 3, 6 October to 5 January: due 7 February 2027
- Quarter 4, 6 January to 5 April: due 7 May 2027
- Final declaration: 31 January 2028
On our plans, all of this is handled: we prepare each update, you approve it, we file it. From £50 a month plus VAT.