Q2 is Coming: 10 Tips to Get Your Making Tax Digital Update In On Time
If you're a sole trader or landlord affected by the first phase of Making Tax Digital for Income Tax (MTD ITSA), your second quarterly update is coming up.
For those with qualifying income of £50,000 or more, keeping your records up to date throughout the year will make each quarterly submission much easier and help you avoid a last-minute rush.
Here's our guide to 10 simple things you can do now to get ready for your Q2 update.
1. Know your dates
For those using the standard quarterly periods, Q2 covers 6 July to 5 October 2026.
Your quarterly update is due to HMRC by 7 November 2026.
If you've chosen to use calendar quarters instead, your reporting period will be different, so make sure you know which dates apply to you.
2. Get Q1 in first
Haven't submitted your first quarterly update yet? Don't panic — you can still get it completed.
Keeping your quarterly updates up to date is important, as you'll need to have your required quarterly information submitted before completing your end-of-year obligations.
If you're behind, now is the perfect time to catch up rather than allowing the work to build up.
3. Reconcile your bank feeds
One of the simplest ways to make your MTD update easier is to keep your bookkeeping up to date.
Check your bank feed regularly and make sure transactions have been matched and reconciled against your bank statements.
Unmatched or unexplained transactions can quickly turn a straightforward quarterly update into a much bigger job.
4. Check your categories
Take a few minutes to check that your income and expenses have been recorded under the correct categories in your accounting software.
Getting your categories right helps ensure the figures you're using for your MTD submission are accurate.
If you're unsure where something should be allocated, it's much easier to check now than when you're trying to submit your update at the last minute.
5. Remember that your figures are cumulative
Your Q2 update isn't simply a snapshot of the latest three months.
Your quarterly figures build throughout the tax year, so make sure your records are complete from 6 April 2026 onwards.
If you identify an error or missing transaction from Q1, now is a good time to correct it so that your figures are accurate going forward.
6. Keep each income source separate
If you have more than one source of income, it's important to understand how these need to be reported.
For example, if you're both a sole trader and a landlord, you may have separate reporting requirements for your business and property income.
If you're unsure what you need to submit, it's worth getting advice before your next deadline.
7. Chase missing receipts now
Don't leave your paperwork until November.
Gather your invoices, receipts, rental statements and other records for July to September while the transactions are still fresh in your mind.
Keeping your records organised throughout the year will make your quarterly bookkeeping much quicker and easier.
8. Check your software connection
If you're using MTD-compatible accounting software, make sure it is still correctly connected and authorised with HMRC.
It's much better to discover a connection problem now than on the day you're trying to submit your quarterly update.
If you've changed software or had any issues with your HMRC authorisation, check everything is working before the deadline gets closer.
9. Review your tax estimate
Once your figures have been updated, your accounting software or HMRC account may give you an indication of your estimated tax position.
This can be useful for planning ahead and making sure you have money set aside for your future tax bill.
Remember, an estimate isn't the same as your final tax liability, but it can be a helpful guide.
10. Don't leave it until the last week
Although there is currently a penalty easement for quarterly updates during the first year of MTD ITSA, it's still a good idea to get into the habit of submitting on time.
Building a routine now means quarterly MTD updates can become a normal part of running your business rather than a last-minute task.
The sooner you get your bookkeeping up to date, the easier your quarterly submission should be.
Need a hand with Making Tax Digital?
Making Tax Digital doesn't have to be complicated, but keeping your records up to date is key.
At VA Business Services, we can help you keep your bookkeeping up to date and make sure your quarterly MTD updates stay on track.
Whether you need ongoing bookkeeping support, help with your MTD submissions or simply some guidance on getting your records ready, we're happy to help.
Get in touch with us today:
📞 01642 686414📧 office@vabusinessservices.co.uk
Or visit our website to find out more about our bookkeeping, accounting and Making Tax Digital services.
Please note: MTD rules and HMRC guidance can change. The information in this article is intended as general guidance and should not be treated as individual tax advice.
Comments