For everyone brought into Making Tax Digital in April, the first quarter — 6 April to 5 July — has now closed. Some sole traders have already sent their first quarterly update. Many are planning to do it in the coming weeks. And plenty are still wondering whether what they have is even close to right.
If that last one sounds familiar, you are certainly not alone. Whenever a tax system changes, the first reporting period is always the hardest. The good news is twofold: the deadline for this first update is 5 August, so there is still time — and every quarter after this one should get easier.
If You Have Not Submitted Yet, You Are Not Late
The update window for the first quarter runs until 5 August. That is enough time to pull together three months of income and expenses, get them into digital records and submit — even from a standing start. What it is not enough time for is another month of putting it off, so treat this week as the moment to start.
Don’t Treat Quarters Like Mini-Januaries
The biggest mistake early on is carrying the old Self Assessment rhythm into the new system: submit, switch off for three months, then scramble again. The second quarter has already begun — it started on 6 July — so the easiest time to get ahead of it is now:
- review how your bookkeeping actually went this quarter
- clear the backlog of receipts floating around the van, inbox and kitchen drawer
- reconcile the quarter’s bank transactions while they are still recognisable
- check your expenses are landing in sensible categories
Learn From the First Quarter
Before the details fade, ask yourself four honest questions:
- Did I struggle to find receipts?
- Was my mileage actually recorded, or reconstructed from memory?
- Did I leave everything until the final week?
- Could I have answered a question about my figures without an archaeology session?
Whatever you answered, that is your checklist for the quarter ending 5 October — with the next update due by 5 November.
MTD Is About Habits, Not Software
A lot of energy goes into hunting for the perfect accounting software. In reality, the tool matters far less than the rhythm. A few minutes of recording income and expenses each week beats an expensive package used once a quarter — and it is the difference between quarterly updates being a non-event and being four mini-Januaries a year.
The Bottom Line
The first quarterly update is not the finish line. It is the start of a routine — and the sole traders who build the habit now will barely notice the deadlines by this time next year.
123Tax is built around exactly that routine: send receipts and income over WhatsApp as you go, and each quarterly update is compiled, checked with you and filed — no software to learn, no deadline stress.