Making Tax Digital for Income Tax is one of the biggest changes to the UK tax system in recent years. If you are affected by the new rules, your first quarterly submission can feel unfamiliar. The good news is that with the right preparation, the process is straightforward.
This guide explains what you need to do before your first Making Tax Digital submission, how to avoid common mistakes and how Tax2u can help you stay compliant with HMRC.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax requires eligible self employed individuals and landlords to keep digital records and send quarterly updates to HMRC using compatible software.
Quarterly updates are not tax returns. They are summaries of your business income and expenses taken from your digital records. At the end of the tax year, you will still need to complete your final tax return and make any necessary adjustments, relief claims and declarations.
Who needs to submit quarterly updates?
From 6 April 2026, Making Tax Digital for Income Tax applies to sole traders and landlords with qualifying income above the current HMRC threshold. The programme will expand to additional taxpayers in future years.
If you are unsure whether the rules apply to you, it is important to check your position before your first submission deadline.
Prepare your digital records early
Accurate digital records are the foundation of every successful Making Tax Digital submission.
Before preparing your quarterly update, make sure you have recorded:
- All business income received
- Business expenses
- Sales invoices
- Purchase invoices
- Receipts
- Bank transactions relating to your business
Updating your records regularly throughout the quarter makes the submission process much easier.
Use HMRC compatible software
HMRC requires quarterly updates to be submitted through compatible software. Paper records and manual online submissions are not accepted for Making Tax Digital reporting.
Your software should allow you to:
- Create digital records
- Store business income and expenses
- Correct errors
- Prepare quarterly updates
- Submit information directly to HMRC
It is recommended that you choose and set up your software before your first reporting period begins.
Check your income and expenses carefully
Before submitting your quarterly update, review your figures carefully.
Check that:
- All income has been recorded
- Expenses have been categorised correctly
- Duplicate entries have been removed
- Missing receipts have been added
- Bank transactions have been reconciled
Taking a few extra minutes to review your records can prevent unnecessary corrections later.
Understand what your quarterly update includes
Many taxpayers worry that the quarterly submission works like a Self Assessment tax return.
It does not.
Your quarterly update contains summary totals of your business income and expense categories from your digital records. You do not normally make tax adjustments, claim allowances or include other personal income at this stage. Those adjustments are made when completing your end of year tax return.
Know your submission deadlines
If you use standard quarterly reporting periods, the first quarterly update for the 2026 to 2027 tax year is due by 7 August 2026.
The remaining standard deadlines are:
- 7 November 2026
- 7 February 2027
- 7 May 2027
Your final tax return is then submitted through compatible software after the end of the tax year.
Avoid common Making Tax Digital mistakes
Many first time users experience problems that can easily be avoided.
Common mistakes include:
- Waiting until the deadline to update records
- Using software that is not compatible with HMRC
- Forgetting to record business expenses
- Mixing personal and business transactions
- Failing to reconcile bank accounts regularly
- Not checking income totals before submission
Keeping your records updated throughout the year reduces stress and improves accuracy.
Why early preparation makes a difference
Preparing early gives you time to:
- Correct bookkeeping errors
- Organise receipts and invoices
- Understand your estimated tax position
- Meet deadlines without rushing
- Build good record keeping habits
Many businesses find that regular quarterly bookkeeping becomes much easier after the first submission.
How Tax2u can help
Making Tax Digital is a significant change, but you do not have to manage it alone.
At Tax2u, we help self employed individuals and landlords:
- Set up Making Tax Digital compliant systems
- Maintain accurate digital records
- Review bookkeeping throughout the year
- Prepare quarterly submissions
- Stay compliant with HMRC requirements
- Complete year end tax returns with confidence
Whether this is your first quarterly update or you simply want reassurance that everything is correct, our experienced team is here to help.