MTD Quarterly Updates Explained: What to Submit, When, and How

Last updated: March 2026 Written by Lillie Topham, freelance vocalist and Gigflow co-creator

Summary: Making Tax Digital quarterly updates for self-employed people are not four tax returns — they are simple summaries of your income and expense totals, sent to HMRC through compatible software four times a year. If your gross self-employment and property income exceeds £50,000, quarterly reporting is mandatory from April 2026, with your first submission due by 7 August 2026. If your records are up to date, each quarterly update should take minutes, not hours.

When I first heard that Making Tax Digital meant quarterly updates, my stomach dropped — four tax returns a year on top of gigging, driving, and invoicing? Then I actually looked into what a quarterly update involves, and it is nothing like what I expected. This is the plain-English breakdown of MTD quarterly reporting for self-employed performers, covering what you submit, when, and how.

What is a quarterly update?

A quarterly update is a digital summary of your business income and expenses, sent to HMRC four times a year through MTD-compatible software. It is not a tax return. It is not a mini Self Assessment. It is a check-in that sends category totals so HMRC can estimate your tax position throughout the year.

Your software sends the data — you do not log into the HMRC website and type numbers in manually. You do not need to make tax adjustments, claim capital allowances, or work out private use percentages at this stage. That all happens once, at year end.

HMRC does not receive your individual receipts, invoices, or bank statements. It receives totals.

After each update, your software shows an estimated tax figure based on what you have submitted so far. This is a rough estimate and will change as the year progresses — it is not a bill.

Three things a quarterly update is not:

• Not a tax return. No personal allowances, reliefs, or other income sources. Those happen at year end.

• Not a tax bill. You do not pay tax four times a year. Payment dates remain unchanged: 31 January and 31 July.

• Not transaction-level reporting. HMRC gets totals per category, not a list of every gig you played.

When are the quarterly deadlines?

The 2026/27 tax year has four quarterly periods, each with a submission deadline roughly one month and two days after the quarter ends.

The Final Declaration deadline is the same date you already know from Self Assessment — 31 January following the end of the tax year.

Calendar quarter alternative

HMRC also allows calendar update periods, ending on the last day of March, June, September, and December. This can make sense if you are also VAT-registered on calendar quarters. You elect this through your software before your first submission, and it stays fixed for the tax year. For most performers, the standard tax-year quarters are simpler.

What information goes into each update?

Each quarterly update contains income and expense totals by category — broadly mirroring the categories on the SA103 Self Assessment supplementary pages. Your software compiles your digital records into these totals. HMRC receives the totals. It does not receive individual transaction data.

The £90,000 simplified threshold

Here is the good news for most performers: if your turnover is below £90,000 per income source (which covers the vast majority of us), you can use simplified three-line accounts. That means you report just three figures: total income, total expenses, and net profit. No detailed category breakdown required.

If your turnover from a single income source is £90,000 or above, you must provide a full category-level breakdown. But for a singer earning £55,000 gross from gigs, the simplified route applies.

Updates are cumulative

This is the detail that made me relax about the whole thing. Each quarterly update includes year-to-date cumulative totals, not just the most recent three months. If you forget to record a gig fee in Q1, it automatically gets included when you submit Q2 — as long as you add it to your records before that submission. No need to go back and formally amend Q1.

I have definitely forgotten to log a cash-on-the-night pub gig before. Under this system, that is a non-issue.

Expense categories for performers

For those above £90,000 or who choose to categorise anyway, the standard HMRC categories mirror the SA103 form: travel costs (mileage at 45p/25p per mile), cost of goods (backing tracks, sheet music), professional fees (accountant, MU subscription), general admin (phone, broadband), and other business expenses (costumes, equipment hire, insurance). The full list of expenses musicians can claim covers these in detail.

What about agency commission?

If your agency deducts commission before paying you, the gross fee (before commission) should be recorded as your income, and the commission as an expense. The same applies if the agency invoices you separately. This is an area worth getting your accountant's input on, because the way different agencies handle commission varies.

Worked example — a singer's first quarterly update

Let me walk through what a real Q1 submission might look like. This is based on numbers that are realistic for a working vocalist.

Lillie performed 14 gigs between 6 April and 5 July 2026 — a mix of direct bookings and agency gigs across Yorkshire.

Income

Expenses (simplified — under £90,000 threshold)

What actually gets submitted (simplified three-line)

That is it. Three numbers. Your software sends them to HMRC, and HMRC sends back an estimated tax figure based on Q1 extrapolated across the year. This estimate will update after Q2, Q3, Q4, and the Final Declaration.

If you keep your gig records up to date as you go — logging fees, mileage, and commissions after each gig rather than reconstructing three months from memory — pulling these numbers together takes minutes. Apps like Gigflow categorise income and expenses per gig automatically, so generating quarterly totals is a case of checking the numbers and exporting. A spreadsheet works too, as long as the categories are right.

What happens at Q2

Because updates are cumulative, the Q2 submission includes Q1 and Q2 totals combined. If Lillie forgot to record a £200 gig in Q1, she adds it to her records before submitting Q2 and it flows in automatically.

What about the Final Declaration?

The Final Declaration replaces your old annual Self Assessment return. It is due by 31 January following the end of the tax year (31 January 2028 for 2026/27).

This is where you bring everything together: all your quarterly data (pre-populated from your four submissions), plus any other income sources like bank interest, employment income, or dividends. You also claim allowances and reliefs here — capital allowances, private use adjustments, and anything else that affects your final tax figure.

Tax adjustments happen at this stage, not in the quarterly updates. The Final Declaration must be submitted through your MTD-compatible software — not through the old HMRC online Self Assessment portal. Payment dates remain unchanged: 31 January and 31 July.

What software do you need?

You must use HMRC-recognised MTD-compatible software that connects to HMRC's systems via their API. HMRC will not provide its own filing tool — all quarterly submissions and the Final Declaration go through third-party software.

Spreadsheets alone will not work. You can keep your records in Excel or Google Sheets, but you need bridging software to connect them to HMRC's MTD system. Data transfers must be digital — copy-pasting or manually retyping figures from a spreadsheet into another system is not permitted.

Free options do exist. FreeAgent is free through NatWest, Mettle, and some other banks. Sage, QuickBooks, and Xero all offer MTD-compatible products at various price points. HMRC maintains a searchable list at gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax.

What "digital records" actually means

You must record the amount, date, and category of every income and expense transaction digitally. You do not need to scan or upload every receipt — the digital record of the transaction is what matters. Records must be maintained digitally throughout the year, not reconstructed from a shoebox of receipts at year end. HMRC wants records kept as close to real-time as possible, but you can create them at quarterly intervals as long as everything is in the system before you submit.

Do you need to sign up?

If your gross self-employment and property income exceeded £50,000 on your 2024/25 tax return, you need to be signed up for MTD for Income Tax before April 2026. HMRC will write to people in scope, but it is your responsibility to check — do not wait for the letter. Sign up through your Government Gateway account, or ask your accountant to do it on your behalf.

The 60-gig problem

Here is why more performers are affected than you might think. A singer averaging £850 per gig who performs 60 gigs in a year has gross income of £51,000. That is above the £50,000 threshold — even if their taxable profit after expenses is only £32,000. The threshold is based on gross income before expenses, not profit. I know performers who assumed they were safe because their profit was well under £50,000, only to realise their gross figure put them in scope.

The thresholds drop in subsequent years: £30,000 gross from April 2027 and £20,000 from April 2028 (subject to legislation). Most regularly gigging performers will be affected within two to three years.

What happens if you miss a deadline?

HMRC is using a points-based penalty system for late submissions and a separate regime for late payments.

Late submission penalties

Each late quarterly update earns one penalty point. At four points, you receive a £200 fine — and every subsequent late submission triggers another £200. Points can be reset after 12 months of on-time submissions (provided all outstanding returns are filed), and individual points expire after 24 months.

The 2026/27 soft landing

For the first year of MTD (2026/27), HMRC will not apply penalty points for late quarterly updates. This gives everyone time to adjust without financial risk from the quarterly deadlines.

However, the soft landing does not cover everything. Penalty points do apply for a late Final Declaration (due 31 January 2028) even in the first year. And late payment penalties still apply under their own regime.

Late payment penalties

Late payment works differently from late submission. For 2026/27:

• 0–15 days late: No penalty (interest accrues, but no fine)

• 16–30 days late: 3% of the tax outstanding at day 15

• 31+ days late: An additional 3% at day 30, then 10% per annum calculated daily from day 31

There is also a first-year payment soft landing: HMRC will not assess the day-15 penalty in the first year, giving you 30 days before any late payment penalty applies. From April 2027, the rates increase to 4% at day 16 and 4% at day 30.

This is general guidance based on my experience and research — it is not professional tax or financial advice. If your situation is complicated, speak to an accountant.

FAQ

Do I need to submit quarterly updates if I earn under £50,000? Not yet. The £50,000 gross threshold applies from April 2026. If your combined self-employment and property income on your 2024/25 return was below £50,000, you are not currently in scope. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

What if I have gigs across multiple agencies — do I submit one update or several? One update per self-employment business. All your gig income goes into a single quarterly update, regardless of how many agencies or direct bookings make up that total. You do not submit separate updates per agency.

Can my accountant submit quarterly updates for me? Yes. Your accountant can submit on your behalf through their MTD-compatible software. They sign up as your agent through their Government Gateway account and can manage your quarterly submissions and Final Declaration.

What happens if I make a mistake in Q1? Because quarterly updates are cumulative, corrections flow into the next submission automatically. Update your records with the correct figures, and Q2 will include the corrected year-to-date totals. No formal amendment of Q1 is needed.

Do I still need to do a Self Assessment tax return? The Final Declaration replaces the annual Self Assessment return for people in MTD. It is submitted through your MTD software by 31 January following the tax year, just like Self Assessment. If you have income sources not covered by MTD (such as employment income or dividends), these are included in the Final Declaration.

Is there a penalty-free grace period? For 2026/27, HMRC will not issue penalty points for late quarterly updates — so you have a full year to get used to the new rhythm. But the Final Declaration (due 31 January 2028) is subject to penalties from the start, and late payment penalties also apply.

Does Gigflow submit quarterly updates to HMRC? Not currently. Gigflow tracks your gig income, expenses, mileage, and agency commissions in the digital record format that MTD requires. You can export your data and use it with MTD-compatible software or bridging software for HMRC submission. Gigflow handles the record-keeping side — you still need separate filing software.

Quarterly updates are simpler than they sound. They are not four tax returns — they are four check-ins that send category totals from records you should already be keeping. The performers who will find this painless are the ones logging gig details as they go, rather than reconstructing months of work from memory. For a deeper look at what MTD means and whether you are in scope, read the full Making Tax Digital guide for musicians.

Keep your gig records MTD-ready all year. Try Gigflow free at app.gigflow.co.uk.