Simple answers for sole traders.
If you’re sending your first Making Tax Digital (MTD) update this August, you’re probably wondering what HMRC expects.
The good news is that it isn’t another tax return, and it doesn’t have to be complicated.
This guide explains what your first quarterly update is, what you’ll need to prepare and how keeping your bookkeeping up to date makes the whole process much simpler.
When is your first update due?
If you joined Making Tax Digital for Income Tax on 6 April 2026, your first reporting period will usually cover:
6 April 2026 to 5 July 2026
Your first quarterly update is normally due by 7 August 2026.
Your accounting software will confirm your exact deadline.
What is an MTD update?
An MTD update is simply a summary of your business income and allowable expenses for the last three months.
It isn’t another tax return.
You won’t pay tax when you submit it, and your figures can still be updated before your final tax position is worked out at the end of the tax year.
Think of it as keeping HMRC up to date as the year progresses.
What should you have ready?
Before you submit, it’s worth checking that your records are complete.
That means making sure you’ve recorded:
- All business income
- Business expenses
- Bank transactions
- Missing invoices or receipts
- Any personal spending removed from your business records
Good bookkeeping throughout the quarter makes your MTD update much quicker to complete.
Common mistakes
Your first quarterly update is often when small bookkeeping issues come to light.
The most common are:
- Missing income
- Forgotten expenses
- Mixing personal and business spending
- Bank transactions that haven’t been categorised
- Leaving everything until the deadline
Finding these early makes future updates much easier.
A little preparation goes a long way
The submission itself is usually quick.
What takes time is catching up on months of bookkeeping if you’ve fallen behind.
Spending a little time keeping your records organised during the quarter means your updates become much easier and far less stressful.
How Brease helps
Making Tax Digital shouldn’t become another job on your to-do list.
When you join Brease, we help keep your bookkeeping up to date using MTD-compatible software that’s included in your monthly package.
That means you’re always working towards your next quarterly update, rather than rushing to prepare it at the last minute.
Simple bookkeeping. MTD-ready. One less thing to think about.
Ready to make your accounting a Brease?
Keeping your bookkeeping up to date shouldn’t be something you squeeze in after a long day.
With Brease, your bookkeeping, MTD-ready software and ongoing support are all included, helping you stay organised and ready for every quarterly update.
Looking for more simple business advice?
This guide is part of the Brease Guides collection, created to help sole traders understand bookkeeping, tax and Making Tax Digital without the jargon.
