If you’re one of the thousands of sole traders or landlords who joined Making Tax Digital (MTD) this April, your first quarterly update is almost here.
For many people, this will be the first time they’ve submitted business information to HMRC using MTD-compatible software. It can feel like a big change, especially if you’ve always completed one tax return each year.
The good news is that, once everything is set up correctly, the process is usually much simpler than many people expect.
Who needs to submit in August?
If you started using MTD for Income Tax from 6 April 2026, your first quarterly update will normally cover:
6 April 2026 to 5 July 2026
This update must usually be submitted by 7 August 2026.
Your software should tell you the exact deadline based on your reporting period.
What is a quarterly update?
A quarterly update is not another tax return.
Instead, it’s a summary of your business income and allowable expenses for the quarter. HMRC uses this information to build an ongoing picture of your taxable profits throughout the tax year.
You are not paying tax when you submit your quarterly update, and the figures can still be adjusted later if necessary.
What information do you need?
Before submitting, make sure your records are complete for the quarter.
This includes:
- All business income received
- Business expenses
- Bank transactions recorded correctly
- Any missing invoices or receipts
- Any personal transactions removed from your business records where appropriate
Accurate bookkeeping throughout the quarter makes the submission much quicker.
Common mistakes to avoid
The first submission is where many businesses discover small issues with their records.
Some of the most common include:
- Forgetting to record cash sales
- Missing business expenses
- Mixing personal and business spending
- Leaving bank transactions uncategorised
- Waiting until the last minute to review everything
Finding these problems early makes future quarterly updates much easier.
Don’t leave it until the deadline
Even though the submission itself is usually quick, correcting bookkeeping problems can take longer than expected.
Leaving everything until the first week of August can create unnecessary pressure, particularly if you need help or have software questions.
Completing your bookkeeping during July gives you time to check everything before submitting.
We’re here to help
Making Tax Digital is changing the way many businesses deal with HMRC, but you don’t have to work through it alone.
Whether you’re unsure about your records, need help with software, or simply want someone to check your first quarterly update before it’s submitted, we’re here to help.
Getting the first submission right makes every future quarter easier.
Need help with your first MTD submission? Contact North Devon Accounts today and we’ll make sure everything is ready before the August deadline.
