Making Tax Digital · Sole traders
Can you submit the first MTD update on 1 July?
ONLY£15A MONTHWhether an update can be sent at the beginning of July depends on the reporting calendar and HMRC's early-submission conditions.
Whether an update can be sent at the beginning of July depends on the reporting calendar and HMRC's early-submission conditions. It is misleading to describe 1 July as a universal opening day for every business's first quarterly update.
Check the cut-off for your business
A calendar-based first period ends on 30 June. A standard first period ends on 5 July. On 1 July, those businesses are therefore at different points in the reporting cycle, even though the filing deadline is the same.
HMRC permits certain early updates up to ten days before the period ends when there will be no further transactions to record for that period. That is a condition to assess, not a general instruction to submit incomplete records early.
Readiness matters more than the earliest date
Check all accounts, cash and provider statements before approving the figures. A business with daily sales cannot assume there will be no more transactions simply because most bookkeeping is complete.
If you use calendar periods, confirm that the software has the correct setting for the business. The choice needs to be made before the first update for the year and cannot simply be changed midway through that year after submission.
Worked comparison: two businesses on 1 July
A calendar-period consultant has a first reporting period ending 30 June and can prepare the completed period for submission. A standard-period retailer still expects sales through 5 July.
The retailer should not use the consultant's cut-off or send an incomplete update on the assumption that the same July date applies to everyone. Both should check their own obligation and records.
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.
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.
Where this fits into Making Tax Digital
For 2026/27, the first mandatory phase generally covers individuals whose combined qualifying self-employment and property income was more than £50,000 in 2024/25, subject to exemptions. Qualifying income normally means income before expenses. It is a different figure from taxable profit. Check the qualifying-income rules.
Once within MTD, keep the required digital records and send quarterly summaries for each relevant business. The summaries are cumulative from the start of the reporting year. They do not contain your entire personal tax position, and sending one does not itself create a quarterly tax-payment demand.
HMRC does not require accounting or tax adjustments before each quarterly update. Those adjustments and the other information needed for the annual return still have to be completed at the appropriate stage. Keep a review list so a matter deferred until year end is not forgotten. Read HMRC's quarterly-update guidance.
Software can organise the information, but the business facts remain essential. Review the figures you approve rather than assuming that a successful import has also settled every tax question.
Confirm before sending
Read the period displayed in the software, verify the cumulative start date and check that the figures cover the required interval. If considering early submission, confirm the HMRC conditions and the actual transaction position rather than relying on a generic countdown article.
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.