Standard Quarters vs Calendar Quarters: Which Should You Choose?
MTD for Income Tax gives some taxpayers a choice between two quarterly reporting schedules -- standard quarters, which follow the tax year, and calendar quarters, which align with calendar months. For most taxpayers there is no meaningful difference, but for those with an accounting period starting on 1 April, the calendar quarter option can simplify record-keeping. This guide explains the difference and helps you decide.The Two Quarterly Period Options
Under MTD for Income Tax, quarterly updates are normally submitted on a schedule aligned to the tax year (6 April to 5 April). HMRC calls this the standard quarterly period.
However, HMRC also offers a calendar quarterly period option for taxpayers whose accounting period runs from 1 April to 31 March. Calendar quarters align with the start of calendar months, removing the need to account for the few days at the beginning and end of each quarter that fall outside a complete month.
Standard Quarterly Periods
| Quarter | Period | Submission deadline |
|---|---|---|
| Q1 | 6 April to 5 July | 5 August |
| Q2 | 6 July to 5 October | 5 November |
| Q3 | 6 October to 5 January | 5 February |
| Q4 | 6 January to 5 April | 5 May |
Standard quarters apply automatically to all MTD customers. Unless you actively choose to switch to calendar quarters, these are the periods your software will use.
Calendar Quarterly Periods
| Quarter | Period | Submission deadline |
|---|---|---|
| Q1 | 1 April to 30 June | 5 August |
| Q2 | 1 July to 30 September | 5 November |
| Q3 | 1 October to 31 December | 5 February |
| Q4 | 1 January to 31 March | 5 May |
Note that the submission deadlines are the same regardless of which period type you choose. The only difference is the start and end dates of each reporting window.
Who Can Use Calendar Quarters?
The calendar quarterly option is available to any MTD customer, but it only provides a practical benefit for taxpayers whose accounting period runs from 1 April to 31 March.
From the tax year 2024/25, HMRC treats accounting periods running from 1 April to 31 March as equivalent to the 6 April to 5 April tax year. This removes the small adjustment that would otherwise be needed for the five days between 1 April and 5 April.
If your accounting period starts on any date other than 1 April, switching to calendar quarters provides no practical advantage and may cause unnecessary complexity.
When Must You Make the Choice?
You must choose your quarterly period type before submitting your first quarterly update for a tax year. Once you have submitted Q1, the period type is locked in for the rest of that tax year -- you cannot switch mid-year.
If you sign up for MTD late in the tax year, you can still make the change as long as it is before your first submission.
The election carries forward year on year. Once you have switched to calendar quarters, your updates will continue on calendar quarters in subsequent years unless you actively switch back.
How to Switch to Calendar Quarters
You cannot change your quarterly period type through HMRC's online services. It must be done through your MTD-compatible software. Your software uses HMRC's Create and Amend Quarterly Period Type API to make the change on your behalf.
In practice, this means:
- Log in to your MTD software before submitting your first quarterly update
- Navigate to the quarterly period settings (the exact location varies by software)
- Select the calendar quarterly option
- Your updated obligations will appear showing the new calendar period dates
A Note on the First Quarter for Calendar Switchers
When you switch to calendar quarters for the first time, your first period starts on 6 April (the first day of the tax year) and ends on 30 June -- not 1 April. This is because the tax year starts on 6 April.
In subsequent years, your first quarter will start on 1 April. Customers who made this switch during the 2025/26 pilot year need to ensure the small amount of income and expenses covering 1 April to 5 April of that year is still accounted for through the Business Source Adjustable Summary, which your software handles automatically.
Which Should You Choose?
For most taxpayers -- especially those whose accounting year runs from 6 April or uses a different date entirely -- standard quarters are the right choice. There is no additional benefit to switching, and the deadlines are identical either way.
If your business accounting year genuinely runs from 1 April to 31 March (common for some landlords and businesses that align to the calendar year), calendar quarters may feel more natural and reduce minor adjustment calculations.
When in doubt, speak to your accountant or check with your MTD software provider before making the election.
How Taxd Handles Quarterly Period Elections
Taxd's software guides you through the quarterly period choice during onboarding and before your first submission. If you are eligible for calendar quarters, Taxd will present the option and explain the implications before you confirm. Start your free trial at taxd.co.uk/mtd.