Understanding the 5 August, 5 November, 5 February, and 5 May deadlines what they mean, what happens if you miss one, and how to stay compliant.
What Are MTD Quarterly Update Deadlines?
If you’re subject to Making Tax Digital for Income Tax (MTD-ITSA), you must submit four quarterly updates to HMRC each year. These aren’t tax returns they’re digital summaries of your income and expenses for each three-month period.
The deadline for each quarterly update is one month and five days after the quarter ends.
The four MTD quarterly deadlines are:
- 5 August for Q1 (6 April – 5 July)
- 5 November for Q2 (6 July – 5 October)
- 5 February for Q3 (6 October – 5 January)
- 5 May for Q4 (6 January – 5 April)
These dates are fixed every year and apply to all sole traders and landlords in MTD.
Breaking Down Each Quarter
Q1: 6 April – 5 July → Deadline: 5 August
What you’re reporting: All income and expenses from the start of the tax year (6 April) through to 5 July.
Why it matters: This is your first MTD submission of the year. It sets the baseline for your annual tax position.
Common mistake: People forget that the tax year doesn’t follow calendar months. Q1 is exactly 3 months from 6 April, not “April, May, June.”
Pro tip: Most businesses find Q1 the hardest because they’re still getting used to MTD. Start preparing in mid-July to give yourself breathing room.
Q2: 6 July – 5 October → Deadline: 5 November
What you’re reporting: Income and expenses for the second quarter of the tax year.
Why it matters: This update captures summer trading for many businesses. If you’re seasonal (e.g., tourism, landscaping), this quarter might show higher income.
Common mistake: Forgetting to account for summer holidays. If you took time off in August, you might have fewer transactions but you still need to submit.
Pro tip: If 5 November falls on a weekend or bank holiday (it did in 2023), the deadline moves to the next working day. Always check the specific date for your year.
Q3: 6 October – 5 January → Deadline: 5 February
What you’re reporting: Income and expenses covering the final quarter of the calendar year and the start of the new one.
Why it matters: This quarter spans Christmas and New Year. Many businesses have irregular trading patterns during this period.
Common mistake: Missing transactions from early January. People mentally associate “end of year” with 31 December, but Q3 actually runs until 5 January.
Pro tip: The 5 February deadline is the closest to the tax year-end (5 April). After filing Q3, you’re 75% done with your MTD year.
Q4: 6 January – 5 April → Deadline: 5 May
What you’re reporting: The final three months of the tax year.
Why it matters: This is your last quarterly update before year-end reconciliation. After Q4, you’ll prepare your End of Period Statement (EOPS) and Final Declaration.
Common mistake: Treating 5 May as the “final” deadline. It’s not your EOPS and Final Declaration are both due 31 January the following year (10 months after Q4).
Pro tip: Use the period between 5 May and 31 January wisely. Review all four quarters, make adjustments, and prepare your year-end submissions early.
What Happens If You Miss a Deadline?
MTD uses a points-based penalty system for late quarterly updates.
How the Points System Works
- 1 penalty point for each late submission
- Penalty threshold: 4 points
- Once you reach 4 points: £200 fine
- Each additional late submission: Another £200 fine
Points expire 24 months after you return to full compliance (all submissions filed).
Example Penalty Scenario
Year 1:
- Q1 filed late → 1 point
- Q2 filed on time → Still 1 point
- Q3 filed late → 2 points
- Q4 filed late → 3 points
Year 2:
- Q1 filed late → 4 points = £200 fine
- Q2 filed late → Still at 4 points = £200 fine
- Q3 filed on time → Still 4 points (you’re at threshold)
- Q4 filed on time → Still 4 points
Year 3:
- If you file all four quarters on time in Year 3, your points from Year 1, Q1 (now 24 months old) expire
- You drop to 3 points
Total cost in this scenario: £400 in fines plus reputational damage with HMRC.
How to Never Miss a Deadline
Strategy 1: Set Calendar Reminders (Free)
Add these recurring reminders to your phone or calendar:
- 5 July — One month before Q1 deadline (5 Aug)
- 5 October — One month before Q2 deadline (5 Nov)
- 5 January — One month before Q3 deadline (5 Feb)
- 5 April — One month before Q4 deadline (5 May)
This gives you a one-month warning to prepare each update.
Strategy 2: Use Your Software’s Reminders
Most MTD-compatible software (Xero, QuickBooks, FreeAgent) sends automatic deadline reminders. Enable these in your settings:
- Settings → Notifications → Enable “MTD deadline reminders”
Strategy 3: Submit Early
Instead of filing on 5 August, aim to submit by 31 July. This gives you a buffer for:
- Bank feed delays (transactions can take 24-48 hours to import)
- Software glitches
- Discovering missing receipts or errors
- HMRC system downtime (happens around deadline dates)
Best practice: File by month-end for the upcoming deadline. One week of buffer = zero stress.
Strategy 4: Use a Managed Service
If you’re too busy to track deadlines, a managed MTD service handles everything:
- Prepares quarterly updates on your behalf
- Submits before deadlines
- Sends you proactive reminders for any required input
Typical cost: £100–£300 per quarter depending on transaction volume.
Your Action Plan: Staying Deadline-Compliant
This Week
- Add all four quarterly deadlines to your calendar with one-month advance reminders
- Check your MTD software settings and enable deadline notifications
- Decide on your personal submission schedule (e.g., “I’ll always file by month-end”)
Each Quarter
Week 1 of the new quarter: Start recording transactions in your MTD software
Week 8-9: Review your figures and reconcile your bank feed
Week 10-11: Generate the quarterly update and review for errors
Week 12 (month 3): Submit to HMRC by month-end (one week before deadline)
If You’re Struggling
If you’ve already missed a deadline or you’re drowning in quarterly submissions, consider:
- Catch-up bookkeeping service – We bring your records up to date
- Managed MTD service – We handle all future submissions
- One-off consultation – We review your setup and show you how to streamline the process
Book a free consultation or call 03301 332 533