What Happens After Your First MTD Submission?
Submitting your first Making Tax Digital (MTD) update is a key milestone. If you have successfully completed your first quarterly submission, congratulations! You have taken the first step towards a new method of reporting your income to HMRC.
However, your first MTD submission is just that, the first of multiple updates you’ll make throughout the tax year. Knowing what comes next will help you stay organised, avoid unnecessary stress, and make future submissions much simpler.
What happens after your first MTD submission?
Once you’ve submitted your first quarterly update, you move on to the next reporting period.
Your bookkeeping doesn’t stop after you’ve submitted. Instead, you’ll continue recording your income and expenses throughout the year before submitting your next quarterly update.
Think of your first submission as the start of a new routine rather than a one-off task.
Your next MTD deadlines
Making Tax Digital requires four quarterly updates each tax year.
If you’ve completed your first submission, your remaining deadlines are:
- 7 November for the period 6 July to 5 October
- 7 February for the period 6 October to 5 January
At the end of the tax year, you’ll also need to complete your Final Declaration by 31 January, confirming your income and making any final adjustments before your tax is calculated.
Knowing these dates now lets you plan ahead rather than rushing as each deadline approaches.
Keep your bookkeeping up to date
One of the biggest mistakes businesses make after their first submission is assuming they can relax until the next deadline.
In reality, this is the perfect opportunity to build good bookkeeping habits.
Keeping your records updated regularly means:
- Your next submission will take less time.
- Errors are easier to identify.
- Bank accounts stay reconciled.
- Receipts and invoices are less likely to be lost.
- You’ll have a clearer picture of your business finances throughout the year.
Many businesses find that spending a little time each week is far easier than trying to catch up at the end of every quarter.
Review what worked and what didn’t
Your first submission is a valuable learning experience.
Take a few minutes to ask yourself:
- Was your software easy to use?
- Were your records complete?
- Did you struggle to find receipts?
- Were your bank accounts reconciled?
- Did you leave everything until the last minute?
If any part of the process felt difficult, now is the best time to improve it before your next submission.
Remember, the first year is a learning opportunity
HMRC has introduced a soft landing for the first year of Making Tax Digital for Income Tax.
While you are still expected to submit your quarterly updates, no penalty points will be issued for late quarterly submissions during the 2026/27 tax year.
This gives businesses time to become familiar with the new reporting process.
That said, it shouldn’t be seen as a reason to delay. Building good habits now will make future years much easier, especially when the full points-based penalty system applies.
Making Tax Digital is more than compliance
Although MTD is designed to improve tax reporting, there are benefits for your business too.
Keeping your bookkeeping up to date means you can:
- Understand your cash flow.
- Monitor your income and expenses.
- Plan for future tax bills.
- Spot trends in your business.
- Make better financial decisions.
Instead of only looking at your figures once a year, you’ll have a much clearer understanding of how your business is performing throughout the year.
How Rosemary Bookkeeping can help
If you’ve completed your first MTD submission, now is the perfect time to make sure the rest of the year runs smoothly.
Your local Rosemary Bookkeeper can help you:
- Keep your records accurate and up to date.
- Reconcile your accounts regularly.
- Prepare each quarterly submission.
- Stay compliant with HMRC requirements.
- Make the most of your bookkeeping throughout the year.
Making Tax Digital doesn’t end after your first submission. With the right support, every future update can become quicker, easier, and far less stressful.
