Making Tax Digital · Sole traders
Five days before quarter end: a practical MTD preparation plan
ONLY£15A MONTHThe days before a quarter ends are useful for checking coverage and resolving obvious gaps.
The days before a quarter ends are useful for checking coverage and resolving obvious gaps. They are not a reason to freeze the books or stop recording genuine transactions. Use a short preparation plan, then complete the review once the reporting period has ended.
Use the five days for different tasks
Five days before the cut-off, confirm the business and reporting calendar. Four days before, check bank and payment-account coverage. Three days before, collect missing invoices and cash records. Two days before, review unusual transfers and refunds. On the final day, confirm what still needs attention after the cut-off.
For the first standard 2026/27 period, the cut-off was 5 July and the submission deadline was 7 August. These are different dates. Calendar-quarter users have a different cut-off, so the same countdown cannot be applied blindly to every business.
Leave the records open to real activity
Continue recording receipts and payments under the accounting basis used. Pending transactions and payment-provider settlements may need checking after the period ends. Do not accelerate costs, delay receipts or change dates merely to produce a preferred quarterly result.
Keep a separate list for genuine year-end tax adjustments. Quarterly reporting does not require every annual adjustment, but an unresolved bookkeeping error should not be hidden in that list.
Worked example: a missing payment account
During the coverage check, a business discovers that its card-provider account was omitted. It downloads the missing statements and reconciles gross sales, refunds and payouts before approving the update.
The early check gives time to resolve a real gap. Spending the same five days repeatedly looking at the bank total would not have revealed the missing source.
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.
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.
End preparation with an actionable list
Name each missing source, person responsible and next step. After the cut-off, finish the period review and submit through the supported route. Keep the final acknowledgement with the version approved, rather than treating a pre-quarter-end checklist as proof of filing.
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.