Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) changes how sole traders and landlords keep and submit their records. Instead of compiling your records once a year, you now need to keep digital records and send quarterly updates through compatible software.
The first month is the best time to spot and identify and fix issues before they affect your first quarter. Missing receipts, duplicate bank feed entries, unclear expense categories, or mixed personal and business costs are much easier to fix while the details are still fresh.
Our MTD for Income Tax support can help you check your setup, tidy your records, and prepare for your first quarterly update with confidence.
If you would like help reviewing your first month of MTD ITSA digital records, call 01732 387 059.
A strong first quarter is usually built in the first month: accurate categories, clean bank feeds, and small corrections made while the details are still fresh.
What should your first month of digital records show?
Your first month should show income and expenses recorded in software that works with MTD for Income Tax. HMRC expects affected sole traders and landlords to create, store and correct digital records, send quarterly updates, and submit their tax return through compatible software.
A useful first-month check should confirm:
- Income is recorded once
- Expenses sit in sensible categories
- Receipts or notes are attached where needed
- The bank balance matches the software balance
- Personal transactions are kept separate
The common pattern is usually small gaps: a missing receipt, a duplicated bank feed item, a mixed-use cost allocated entirely to the business, or rental income sitting in the wrong category. Our bookkeeping services in Kent are built around accuracy, deadlines, and practical support.
How do you fix common MTD record-keeping errors?
Start with the bank feed. If the same transaction appears twice, remove the duplicate before it becomes part of the quarter. If income has been coded as a transfer, recode it. If a personal payment has slipped into the business records, mark it clearly.
Then check expense categories. MTD does not remove the need for judgement. A van repair, software subscription, home office cost, and landlord maintenance invoice all have different tax treatments. The first month is the right time to agree clear rules, especially where you regularly pay mixed personal and business costs.
Finally, check the audit trail. Keep supplier names clear, attach receipts where the software allows, and add notes where a transaction needs context.
What should you check before your first MTD quarterly update?
The first quarterly update deadline for the 2026 to 2027 tax year is 7 August 2026. Before then, your records should be complete enough to send income and expense totals for the quarter. The quarterly update is not your final tax return, but it should still be based on complete and accurate records.
Before your first update, check that:
- The correct start date has been used from 6 April 2026
- April, May, and June income is included
- Property and self-employment income are not mixed together
- VAT, CIS, or payroll entries are treated consistently
- Accountant access has been authorised
This is where professional review helps. Our chartered accountants in Sevenoaks work with sole traders, limited companies, start-ups, and clients who need management reporting, budgeting, forecasting, and tax support. For MTD, that wider view matters because the quarterly update should support your tax position, not sit apart from it.
Which Making Tax Digital software setup should you review?
Software should make the process easier, not more confusing. Precision Accountants Ltd works with Xero, Sage, QuickBooks, Oracle, and KashFlow, so the best setup is usually the one that fits how you already work, provided it meets MTD requirements.
Review bank feeds, user access, categories, receipt capture, and reports first. You should be able to view quarterly totals without rebuilding the figures manually.
Spreadsheets can still be part of some workflows, but they need the right digital link into MTD-compatible software. If you are choosing between spreadsheets and cloud software, ask one practical question: which option will you actually keep up to date every week?
When should landlords and sole traders get accountant support?
Get support when the records stop being clear at a glance. That may be because you have more than one property, several income streams, regular cash payments, CIS deductions, mileage, mixed-use expenses, or a backlog of receipts.
It also helps when you are technically compliant, but still unsure what the numbers mean. MTD can give you better visibility across the year if the records are reviewed properly. Our process starts by understanding your business, reviewing your options, and giving you a dedicated accountant or bookkeeper. You can see more about how we work.
Make your first quarter easier from the first month
The best way to handle MTD for ITSA is to treat the first month as a test run. Check what has imported, correct what looks wrong, agree your categories, and settle into a routine that takes minutes each week rather than hours at the end of the quarter.
With over 12 years of experience, Precision Accountants Ltd supports sole traders, landlords, start-ups, limited companies, and local businesses with digital record keeping, self-assessment, VAT returns, bookkeeping, payroll, tax planning, and practical business advice.
For friendly help with your first month of MTD digital records, call 01732 387 059 or send us an enquiry. We will help you understand what needs attention and what is already working well.
Frequently asked questions
What is the first MTD for ITSA quarterly update deadline?
For those required from 6 April 2026, the first quarterly update deadline is 7 August 2026.
Do I need to submit perfect figures each quarter?
Quarterly updates should be based on accurate digital records, with the final tax position completed later.
Can I still use spreadsheets for MTD ITSA?
You may be able to use spreadsheets if they connect to HMRC through suitable bridging software.
What records should landlords keep digitally?
Landlords should keep digital records of rental income, allowable expenses, maintenance costs, mortgage interest details, agent fees, and other property transactions.
Can an accountant submit my MTD updates for me?
Yes. If authorised, your accountant or agent can help manage setup, records, quarterly updates, and the final tax return process.