A quarterly update is easier to prepare when the underlying records are already organised. If you are looking at a folder of receipts, several bank accounts and a half-finished spreadsheet, start with a short preparation session rather than trying to solve everything inside your tax software.
This article sets out a practical way to organise that session. It is for sole traders and landlords checking their Making Tax Digital for Income Tax position, rather than a personalised assessment of whether they must use it.
First, check which timetable applies to you
HMRC says that people whose 2024–25 tax return showed qualifying income over £50,000 need to use MTD for Income Tax from April 2026, subject to the applicable rules and exemptions. For this first group, the second quarterly update is due by 7 November 2026. Check your own position using HMRC’s current MTD guide before treating that date as your deadline.
If you are joining in a later phase, the preparation routine below can still help you identify gaps. Use your own start date in your diary.
Give the preparation session one clear outcome
Your aim is a short list of records that are ready, records that are missing and questions that need an answer. You do not need to pretend every uncertainty is resolved before you begin. A useful working page has four columns: item, where it is stored, action needed and who will handle it.
For example, “rental statement from agent” is more useful than “sort paperwork”. The first describes something you can locate or request; the second can remain on a to-do list indefinitely.
Collect records by source
As a practical organising method, give each business or property-record source a clearly named folder. Gather the information you already use to explain income and expenses: invoices, receipts, statements and any notes about unresolved transactions. A folder of evidence supports your preparation; it is not, by itself, a replacement for the digital records or compatible software required by MTD.
Label incomplete items clearly. If a receipt is missing or a bank entry is unfamiliar, put it on your questions list rather than guessing. Keep personal reminders separate from figures intended for a submission.
Check the handover with your accountant or bookkeeper
If someone helps with your records, agree what they need from you and when. Ask who will review unclear entries, who will make corrections and who will confirm the update has been sent. A simple handover note can prevent both people assuming the other has completed the same task.
Working alone? Use the same questions as a self-check. Save the submission confirmation where you can find it again.
Use a guide as a working companion
The Making Tax Digital Survival Blueprint – UK Edition includes a ten-step readiness plan, worksheets and checklists, and a personal MTD Compliance Dashboard. Its opening sections help readers work through their position before moving into software, records and quarterly reporting.
The premium PDF inspected for this article states that its information was current as of 20 August 2026. Use it alongside current HMRC guidance, especially when checking thresholds, deadlines or penalties. The book explains the process; it does not calculate your individual tax bill or replace professional advice.
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General educational information, checked on 15 October 2026. For your own tax position, use current HMRC guidance or consult a qualified adviser.