MTD: You’ve Made Your First Submission. What Happens Next?

For many sole traders and landlords, the first Making Tax Digital quarterly update is now out of the way.

That first submission may have felt like a milestone. New software, new processes, new terminology and, for many people, a fair amount of uncertainty.

The good news is that the next stage should feel much more familiar.

Making Tax Digital is not designed to be a once-a-quarter scramble. The real aim is to make digital record keeping part of your normal routine, so future submissions become simpler and your financial information stays more useful throughout the year.

So, what happens now?

1. Keep your digital records up to date

The biggest mistake now would be to submit your first update and then forget about MTD until November.

HMRC expects businesses within MTD to continue keeping digital records of their income and expenses. HMRC also recommends creating those records as close to the transaction date as possible, helping you maintain a more up-to-date picture of your finances.

That means continuing to:

• record income as it arises
• enter business expenses
• keep supporting records organised
• reconcile bank transactions regularly

A little and often is much easier than trying to catch up three months at a time.

2. Your next update builds on the first one

This is an important point that many people may not realise.

Your second quarterly update does not simply cover the next three months in isolation.

For businesses using the standard update periods, your next update will cover 6 April to 5 October 2026, with a deadline of 7 November 2026. Each quarterly update is cumulative, covering the tax year from the beginning up to the end of that reporting period.

That also means if you spot an error in your records after your first submission, you can correct the digital records and the amended figures will feed into the next cumulative update. You do not normally need to resubmit the previous quarterly update simply because you’ve corrected your bookkeeping.

3. Take a look at your estimated tax position

After submitting a quarterly update, you can see an estimated tax position through compatible software or your HMRC online account.

HMRC may also include other information it already holds when producing that estimate.

It is important to remember that this is still an estimate, not your final tax calculation.

However, it can be useful for:

• anticipating future tax liabilities
• improving cashflow planning
• avoiding surprises later
• understanding how your income is developing during the year

This is one of the areas where MTD can actually become useful rather than simply feeling like another compliance task.

4. Review what worked, and what didn’t

Your first submission was also a useful test of your processes.

Now is a good time to ask:

• Was your bookkeeping up to date?
• Did you struggle to find receipts or invoices?
• Were there lots of uncategorised transactions?
• Was your bank account properly reconciled?
• Did you understand what was being submitted?
• Were you comfortable using your software?

If something made the first submission stressful, fix the process now rather than repeating the same problem in November.

5. Don’t forget the remaining deadlines

For those using standard quarterly periods, the remaining deadlines for the 2026/27 tax year are:

• 7 November 2026
• 7 February 2027
• 7 May 2027

You will then need to prepare and submit your tax return through compatible software by 31 January 2028.

There is no need to wait until the deadline itself. HMRC allows quarterly updates to be submitted once the relevant update period has ended, and in some circumstances they can be sent slightly before the period end where no further transactions are expected.

6. Use the first year to get into good habits

HMRC has confirmed that penalty points will not be applied for late quarterly updates during the 2026/27 tax year. However, businesses still need to maintain digital records and submit all quarterly updates before they can submit their tax return. Late tax return and payment penalties can still apply.

So while there is some breathing space in this first year, it is best viewed as an opportunity to establish a routine rather than permission to ignore the deadlines.

Making MTD work for your business

One of the benefits of digital accounting is that the information you are now keeping for HMRC can also give you a clearer view of your own business.

Rather than only looking at your numbers once a year, regular digital records can help you understand:

• how income is changing
• where costs are increasing
• how your cash position is developing
• what tax you may need to plan for

Done properly, MTD can become part of better financial management rather than simply another reporting obligation.

How Exchange Accountants can help

At Exchange Accountants, we have been helping businesses move to digital accounting long before Making Tax Digital became mandatory.

If your first quarterly submission highlighted gaps in your bookkeeping, software setup or understanding of the process, now is the ideal time to address them.

We can help you keep your records organised, understand what your figures are telling you and make sure you are ready well before the next deadline.

Your first MTD submission is done. Now the aim is to make the next one easier.

If you would like help reviewing your setup or getting into a better routine before 7 November, speak to our team.