MTD reporting periods: standard tax quarters and calendar quarters

MTD Income Tax offers standard and calendar reporting periods. They have different cut-off dates but the same quarterly deadlines. Later updates are cumulative, so the second update covers the year to date rather than only the second three-month segment.

Compare the 2026/27 dates

HMRC publishes the reporting calendars. Check the setting for each business and the circumstances of any business starting or ending during the year.

Choose before the first update

Calendar periods can align conveniently with monthly bookkeeping, but they must be selected through the supported process before the first update for that tax year. Once an update has been sent, the choice cannot be changed for that year.

The reporting calendar does not by itself change the legal tax year or settle accounting-period adjustments. Keep the annual work separate, especially where the accounts end on another date.

Worked example: the second standard update

A business records £10,000 income in its first three-month segment and £12,000 in the next. Before corrections or other relevant changes, the second cumulative update shows £22,000 income from 6 April to 5 October.

Sending only £12,000 as the cumulative total would omit the first segment. The software's period and calculation should make that distinction visible.

Where this fits into Making Tax Digital

For 2026/27, the first mandatory phase generally covers individuals whose combined qualifying self-employment and property income was more than £50,000 in 2024/25, subject to exemptions. Qualifying income normally means income before expenses. It is a different figure from taxable profit. Check the qualifying-income rules.

Once within MTD, keep the required digital records and send quarterly summaries for each relevant business. The summaries are cumulative from the start of the reporting year. They do not contain your entire personal tax position, and sending one does not itself create a quarterly tax-payment demand.

HMRC does not require accounting or tax adjustments before each quarterly update. Those adjustments and the other information needed for the annual return still have to be completed at the appropriate stage. Keep a review list so a matter deferred until year end is not forgotten. Read HMRC's quarterly-update guidance.

Software can organise the information, but the business facts remain essential. Review the figures you approve rather than assuming that a successful import has also settled every tax question.

A review that checks more than the total

Start with coverage: the correct person, business and period, plus all relevant accounts and cash records. Then look at completeness. A feed can be connected today while still missing an earlier week. Confirm the earliest and latest transactions against the source.

Next, inspect unusual items. Large transfers, loan receipts, refunds, net settlements and private purchases often need more context than a bank description provides. Check for duplicate imports where a statement overlaps a live feed. An automatic warning is useful evidence to investigate, not proof that the entry must be removed.

Finally, review category totals. A category unexpectedly showing zero, a large increase or a negative amount deserves an explanation. You do not have to make every annual tax adjustment at this stage, but you should understand the records behind the summary you approve.

HMRC explains what quarterly updates contain. Keep the approved version and the resulting acknowledgement together. If something later changes, correct the source record and use the software's supported update process so you can explain which figures are current.

Keep the evidence connected to the figures

Your digital record should explain the amount, date and nature of the transaction. Keep the invoice, receipt, statement or other evidence that supports it. A photograph can make a paper document easier to retain, but a folder of photographs alone does not create complete transaction records.

For sole traders, HMRC normally requires business records to be kept for at least five years after the relevant 31 January filing deadline. Keep them longer where the rules for a late return, enquiry or other circumstances require it. Check the record-retention guidance.

Make the records usable by your future self. Include a short explanation where a bank description is vague, retain the calculation behind a business-use split and make corrections traceable. For a missing receipt, try the supplier account, email confirmation or a replacement invoice before relying on incomplete evidence.

At review time, compare your records with the bank or payment account and investigate differences. Equal totals are useful, but two errors can cancel each other out. A sample of individual transactions can reveal a duplicated purchase or an omitted customer receipt that a totals-only check misses.

Put both cut-offs and deadlines in the diary

Use quarter-end reminders to finish records and separate deadline reminders to confirm submission. Track each business individually. A shared deadline does not mean one update covers every trade and property business.

Take the next step

Avona.app offers a self-service route from £15/month. Bring your records together, review the figures and choose a workflow that fits your business. For professional help, discuss the scope and total price of Avona Concierge, managed by chartered accountants, before choosing a service.

Related guides

• Reviewing your quarterly summary in Avona before submission
• Quarterly MTD updates and the annual return: what each stage does