Making Tax Digital · Sole traders
From the 5 July quarter end to the 7 August MTD deadline
ONLY£15A MONTHA quarter-end date closes the reporting period; the filing deadline sets the latest date for sending its update on time.
A quarter-end date closes the reporting period; the filing deadline sets the latest date for sending its update on time. For the first standard MTD period in 2026/27, those dates were 5 July and 7 August. The intervening time is for completing and reviewing the records.
Understand what belongs in the period
Check the accounting basis and the business's reporting calendar. A statement arriving in July may contain June transactions, and a payment-provider payout can represent earlier customer receipts. Use the underlying events and consistent timing rules rather than simply grouping files by download date.
The interval from 5 July to 7 August is 33 days, not a universal 30-day reporting rule. HMRC specifies actual deadlines. Put those dates into your calendar instead of calculating every deadline by adding a fixed number of days.
Use the interval deliberately
First establish complete coverage. Then reconcile bank, cash and payment-provider records, resolve exceptions and review category totals. If an accountant is involved, leave time for questions and approval.
Submission is a separate final action. A completed spreadsheet or reconciled cashbook is not evidence that HMRC has received the update. Confirm the business, period and accepted outcome.
Worked example: a statement received after quarter end
A landlord receives the letting agent's June statement on 9 July. The document belongs in the review of the relevant reporting period even though it arrived after the quarter-end date.
The landlord checks the rent, fees and repairs against the payout. The date the statement was downloaded does not by itself determine the tax treatment of every item it contains.
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.
Understand the first-year concession
HMRC states that there are no penalties for missing quarterly-update deadlines for the 2026/27 tax year. That concession does not remove the digital-record or quarterly-reporting obligations, and it does not make all tax returns and payments penalty-free. Read the precise penalty guidance.
Outstanding quarterly reporting must be dealt with before completing the relevant annual return. However, a missed August 2026 update should not be described as an automatic penalty on the separate 2025/26 return due in January 2027. The 2026/27 annual-return deadline is January 2028.
After the first-year concession, the points rules apply to missed quarterly deadlines as described by HMRC. Do not assume that multiple businesses create multiple points at the same deadline. Annual-return rules, late-payment penalties and interest require their own checks.
If you have fallen behind, establish what is outstanding and work through the supported catch-up process. Keep evidence of technical problems and contact the appropriate support team with the business, period and error details. The useful next step is a complete record and an accepted update, rather than guessing what a generic warning might mean.
Keep later activity moving
Continue recording the new period while finishing the previous update. Separate unresolved questions by period and avoid pausing a bank feed to create an artificial boundary. If the deadline has already passed, complete the supported catch-up process promptly.
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.