Making Tax Digital · Sole traders
Submitting your first MTD update: a practical walkthrough
ONLY£15A MONTHOnce the records are complete and reviewed, sending an update can be a short final step.
Once the records are complete and reviewed, sending an update can be a short final step. The total time depends on the state of the records and any issues that need resolving. A realistic walkthrough starts before the submit button and ends with a confirmed outcome.
Prepare the correct update
Sign in through your usual trusted route and select the relevant business. Check the tax year, reporting calendar and cumulative period. Confirm that the software is authorised and that any required MTD sign-up has been completed.
Review the summary against the underlying records. Resolve missing sources, duplicates and unexplained transfers. Keep genuine annual tax-adjustment questions on a review list without using that list to excuse known errors in the transaction records.
Submit and verify
Use the current product's submission process, read the confirmation and check HMRC's response. Screen names vary, so current in-product guidance should take precedence over an old screenshot or remembered button label.
Save the accepted result with the approved figures. If there is an error, capture the relevant details and follow the supported recovery process. If the outcome is unknown, check status before retrying to avoid confusion over multiple attempts.
Worked example: one client, two updates
A sole trader also has a UK rental-property business. They submit the sole-trade update successfully and save its acknowledgement. The property update still requires its own review and submission.
One successful response does not establish that every obligation for the person is complete. The final check is therefore against the list of relevant businesses, not just the most recent success message.
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.
Choose software by the work it needs to do
Start with your actual income sources and records. A sole trade, a UK property business and foreign property can involve different requirements. A product suitable for one set of circumstances is not automatically suitable for every annual-return item you might have.
HMRC's software guidance allows different approaches, including software connected to existing spreadsheets. Check the complete workflow: importing or recording transactions, reviewing the quarterly summary, submitting it, making corrections and completing the annual return.
Try a representative sample that includes a refund, a private transaction, a cash item and an awkward bank description. Ask how the system handles a missing period and how you export records if you leave. These questions are more informative than a long feature list.
Software support and professional tax advice are different services. Confirm who answers each kind of question, when help is available and what the quoted fee covers. Avona.app's entry-level self-service price is £15/month; professional services and additional product capabilities should be checked against the current scope rather than assumed to be included.
Finish with a clear record
Record what was submitted, for which business and period, when and with what outcome. Note any remaining annual work and schedule the next review. The goal is a repeatable process, not a promise that every first-time user can complete all preparation in two minutes.
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.