Making Tax Digital · Sole traders
A practical checklist before your MTD quarter ends
ONLY£15A MONTHThe best pre-quarter-end review identifies missing records while there is still time to obtain them.
The best pre-quarter-end review identifies missing records while there is still time to obtain them. For the first standard 2026/27 period, the cut-off was 5 July and the filing deadline was 7 August. The same review method remains useful for later periods and catch-up work.
Check four sources of incompleteness
First, check every relevant bank and payment account. Second, identify cash receipts and expenses. Third, collect statements showing net settlements or CIS deductions. Fourth, review unresolved purchases and private-use splits.
The gap between quarter end and the filing deadline is not a universal “30-day window”. Use the actual dates published by HMRC. Nor are records permanently frozen at quarter end: genuine errors still need correcting.
Prepare the review, not just the upload
Make sure the correct business and reporting calendar are selected. Review the category totals and list matters needing annual tax adjustment. HMRC does not require those adjustments before each quarterly update, but that is not a reason to leave obvious record errors unexplained.
A live estimate can provide a sense check. It cannot prove that every transaction is present, and it should not be used as the only reconciliation.
Worked example: the account nobody checked
A sole trader's main bank feed is complete, but an online payment account contains £800 of customer receipts and £24 of fees. The pre-quarter-end source list reveals the missing account before the summary is approved.
The records are updated from the settlement information and transfers are checked for duplication. A dashboard showing a healthy main-bank connection would not have revealed the omission on its own.
A review that checks more than the total
Start with coverage: the correct person, business and period, plus all relevant accounts and cash records. Then look at completeness. A feed can be connected today while still missing an earlier week. Confirm the earliest and latest transactions against the source.
Next, inspect unusual items. Large transfers, loan receipts, refunds, net settlements and private purchases often need more context than a bank description provides. Check for duplicate imports where a statement overlaps a live feed. An automatic warning is useful evidence to investigate, not proof that the entry must be removed.
Finally, review category totals. A category unexpectedly showing zero, a large increase or a negative amount deserves an explanation. You do not have to make every annual tax adjustment at this stage, but you should understand the records behind the summary you approve.
HMRC explains what quarterly updates contain. Keep the approved version and the resulting acknowledgement together. If something later changes, correct the source record and use the software's supported update process so you can explain which figures are current.
Keep the reporting dates separate from payment dates
The standard first update for 2026/27 covers 6 April to 5 July 2026 and was due by 7 August 2026. The second covers 6 April to 5 October 2026 and is due by 7 November 2026. The third and fourth deadlines are 7 February 2027 and 7 May 2027. These are cumulative updates, not four isolated sets of three-month totals.
Calendar periods have different cut-offs and the same filing deadlines. Check the setting for each business rather than assuming the dates from a bank statement. HMRC lists both reporting calendars.
The annual return for 2026/27 is due by 31 January 2028. The earlier 2025/26 return normally remains due online by 31 January 2027. Keeping those years distinct avoids a common transition-year misunderstanding.
Payments on account, where required, follow their own January and July timetable. An update acknowledgement confirms a reporting event; it does not confirm that an outstanding tax bill has been paid. Check your actual HMRC account and payment obligations separately from the software's progress indicators.
Keep the evidence connected to the figures
Your digital record should explain the amount, date and nature of the transaction. Keep the invoice, receipt, statement or other evidence that supports it. A photograph can make a paper document easier to retain, but a folder of photographs alone does not create complete transaction records.
For sole traders, HMRC normally requires business records to be kept for at least five years after the relevant 31 January filing deadline. Keep them longer where the rules for a late return, enquiry or other circumstances require it. Check the record-retention guidance.
Make the records usable by your future self. Include a short explanation where a bank description is vague, retain the calculation behind a business-use split and make corrections traceable. For a missing receipt, try the supplier account, email confirmation or a replacement invoice before relying on incomplete evidence.
At review time, compare your records with the bank or payment account and investigate differences. Equal totals are useful, but two errors can cancel each other out. A sample of individual transactions can reveal a duplicated purchase or an omitted customer receipt that a totals-only check misses.
Finish with an exception list
Write down missing dates, missing documents and unresolved amounts. Assign a next action and a review date. Keep the quarterly deadline separate from the period cut-off so you can plan the remaining work accurately.
Take the next step
Avona.app offers a self-service route from £15/month. Bring your records together, review the figures and choose a workflow that fits your business. For professional help, discuss the scope and total price of Avona Concierge, managed by chartered accountants, before choosing a service.