Tag Archive for: Ready for MTD

Last-Minute MTD Checklist Before the August Deadline

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Is Your Business Ready for 7 August?

The first quarterly Making Tax Digital (MTD) deadline is almost here.

If you’re a sole trader or landlord with qualifying income over £50,000, your first quarterly update covering the period from 6 April to 5 July 2026 is due by 7 August 2026.

If you’ve left things a little later than planned, don’t worry. There’s still time to get organised.

Use this MTD checklist to make sure you’re ready before the deadline arrives.

1. Make Sure You’re Using MTD-Compatible Software

Your quarterly update must be submitted via HMRC-compatible software.

If you’re still relying on paper records or spreadsheets without approved bridging software, now is the time to review your setup.

If you’re unsure whether your software is compatible, your bookkeeper can advise.

2. Bring Your Records Up To Date

Your bookkeeping should cover the entire reporting period from 6 April to 5 July.

Check that you’ve recorded:

  • All sales and income
  • All business expenses
  • Bank transactions
  • Invoices issued
  • Receipts for purchases

The more complete your records are, the easier your submission will be.

3. Reconcile Your Bank Account

Your bookkeeping records should match your bank account.

Reconciling your transactions helps identify:

  • Missing payments
  • Duplicate entries
  • Incorrect amounts
  • Transactions that still need categorising

This simple step can prevent mistakes before they’re submitted.

4. Check Your Expense Categories

Have you recorded expenses correctly?

Common categories include:

  • Office costs
  • Travel
  • Equipment
  • Professional fees
  • Staff costs
  • Premises costs

Accurate categorisation makes your records clearer and helps ensure your submission is complete.

5. Look For Missing Information

Before you submit, take a few minutes to check for anything that may have been overlooked.

Ask yourself:

  • Have I recorded every business expense?
  • Are there any missing receipts?
  • Have all invoices been entered?
  • Have all bank transactions been reviewed?

Small gaps are much easier to fix now than they are further down the line.

6. Don’t Leave It Until The Last Minute

The closer you leave your submission, the less time you’ll have to resolve unexpected issues.

Software questions, missing documents or incorrect records all take time to fix.

Submitting early gives you confidence that everything has been completed correctly.

7. Remember, The Soft Landing Doesn’t Mean You Should Wait

HMRC has introduced a soft landing for quarterly submissions during the 2026/27 tax year.

This means you won’t incur late-submission penalty points for your quarterly updates during the first year.

However, you’re still legally required to:

  • Keep digital records
  • Submit quarterly updates
  • Use compatible software

Late payment penalties and interest can still apply where relevant, and the full penalty points system begins from April 2027.

Think of this year as your opportunity to build good habits before the rules become stricter.

Need Help Before The Deadline?

If you’re looking at this MTD checklist and thinking you’ve still got a lot to do, you’re not alone.

Many businesses are still adapting to Making Tax Digital, and there’s no benefit in struggling through it alone.

Your local Rosemary Bookkeeper can help you:

  • Bring your records up to date
  • Check your bookkeeping is accurate
  • Make sure you’re using compatible software
  • Prepare your first quarterly update
  • Build a bookkeeping routine that makes future deadlines much easier

The August deadline doesn’t have to be stressful.

A little preparation now can make every subsequent quarterly submission feel much more manageable.

Find your nearest bookkeeper here, or call us on 0345 8620072

Is Your Current Bookkeeping Making Tax Digital Ready?

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Is your current bookkeeping Making Tax Digital ready?

Making Tax Digital is becoming a standard part of business operations. Although not everyone is required to comply immediately, expectations regarding digital records and regular updates are already influencing bookkeeping practices.

If you’re uncertain about whether your current setup is ready, you’re not alone. Many business owners feel they might be falling behind, but often they only need to make a few small adjustments. This simple self-check is designed to help you assess your current situation without any pressure.

Do you keep your records digitally?

MTD mandates that records be maintained in a digital format, including income, expenses, and relevant supporting details.

Ask yourself:

  • Are your records stored digitally rather than only on paper?
  • Can you easily access past transactions when needed?

If you primarily depend on paper or handwritten notes, this is the first area to assess.

Are your records kept up to date during the year?

With MTD (Making Tax Digital), bookkeeping is no longer a task to be done just once a year. It’s important to maintain regular updates.

Consider:

  • Do you update your records weekly or monthly?
  • Are there long gaps where nothing is recorded?

If you usually catch up near deadlines, this may indicate your routine needs support.

Can you clearly separate business and personal spending?

Maintaining clear separation is crucial under MTD. Mixed transactions complicate record reviews and can lead to repeated errors.

Check whether:

  • You use a dedicated business bank account
  • Personal spending regularly appears in your business records

Maintaining clarity simplifies digital reporting significantly.

Are your records accurate, not just complete?

It’s essential to record all transactions, but ensuring their accuracy is equally important.

Ask yourself:

  • Are expenses consistently categorised?
  • Do the figures match the bank statements after reconciliation?

Repeated small errors can become increasingly difficult to correct over time under MTD.

Do you know when MTD will apply to you?

Many people are uncertain about their timelines; here is clarification.

Understanding when Making Tax Digital (MTD) applies allows you to plan ahead with confidence rather than feeling rushed.

Do you feel confident explaining your figures?

A simple test is whether you can explain your numbers when asked. If your records are unclear or confusing, that often indicates the system needs improvement.

Effective bookkeeping should provide clarity, not uncertainty.

What your answers mean

If you answered “yes” to most of these questions, your bookkeeping is likely on the right track. If a few areas raised concerns, it doesn’t mean you are failing; rather, it indicates where small changes could lead to significant improvements.

MTD readiness is not about being perfect; it’s about consistency, clarity, and developing good habits.

How Rosemary Bookkeeping can help

Preparing for Making Tax Digital can be stress-free. Rosemary Bookkeeping assists businesses at every stage, whether you’re almost ready to review your setup or just beginning.

Your local Rosemary Bookkeeper can help you:

  • Assess your current bookkeeping
  • Identify small changes that improve readiness
  • Keep digital records accurate and organised
  • Prepare calmly for future MTD requirements

If you want reassurance or practical support, we are here to help get your bookkeeping Making Tax Digital ready.

Find your nearest Rosemary Bookkeeper today.