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MTD ITSA Quarterly Checklist (2026/27): Every Step + Every Deadline

By PocketReceipt Team · 10 May 2026 · 6 min read

The 6-step quarterly workflow

Step 1 — Confirm the period

HMRC's standard quarters run from 6 April. So Q1 covers 6 Apr to 5 Jul; Q2 covers 6 Jul to 5 Oct; Q3 covers 6 Oct to 5 Jan; Q4 covers 6 Jan to 5 Apr. (You can elect "calendar quarters" instead — 1 Apr to 30 Jun, etc — but most sole traders stick with the standard.)

Step 2 — Gather all receipts and invoices

Pull every business receipt, invoice, and bank statement covering the period. The submission is digital totals only, but HMRC can ask for the underlying records during an enquiry — and the only receipts that count are the ones you can produce. Receipts captured by app on the day they happen are dramatically easier to reconcile than a shoebox at quarter-end.

Step 3 — Reconcile against bank transactions

For every business bank transaction, identify the matching receipt or invoice. Anything unmatched needs explaining: was it personal use? An owner draw? A category you forgot? Reconciliation is what turns "raw scans" into "submission-ready figures".

Step 4 — Categorise income and expenses

Sort each transaction into HMRC's standard categories. The main expense categories sole traders use:

• Cost of goods bought for resale or goods used (COGS)
• Construction industry — payments to subcontractors
• Wages, salaries and other staff costs
• Car, van and travel expenses
• Rent, rates, power and insurance
• Repairs and maintenance of property and equipment
• Phone, fax, stationery and other office costs
• Advertising and business entertainment costs (most entertainment is NOT allowable)
• Interest and bank/credit card charges
• Accountancy, legal and professional fees
• Depreciation and capital allowances
• Other business expenses

Step 5 — Total each category, submit via approved software

The actual submission is summary figures only — total income, total per expense category. You don't send individual transactions. But you must submit through HMRC-approved MTD-compatible software; web-form filing has been retired for MTD. The list of compatible software is at gov.uk's MTD ITSA collection.

Step 6 — Save the confirmation

HMRC returns a submission receipt. Save it in your records folder for the period — alongside the receipts and the categorised totals. That receipt is part of your audit trail. If HMRC ever queries the figures, you reproduce them from the underlying records and point at the receipt as proof of submission timing.

What HMRC actually wants in each update

• Total business income for the period
• Total expenses for the period, split by HMRC standard categories
• Period dates (handled by your software)
• Your unique taxpayer reference (UTR) and self-employment ID (handled by your software)

That's it. No receipt images, no transaction-level detail, no commentary. The summary IS the submission.

What HMRC does with the submission

HMRC stores the figures and shows you a running estimate of your tax liability. No tax is actually due based on quarterly submissions — they're informational. The annual final declaration (due 31 January) is what locks in the tax for the year.

The four 2026/27 deadlines

• 5 Aug 2026 — Q1 update (6 Apr – 5 Jul). Soft landing applies; no penalty points if missed.
• 5 Nov 2026 — Q2 update (6 Jul – 5 Oct). Soft landing applies.
• 5 Feb 2027 — Q3 update (6 Oct – 5 Jan). Soft landing applies.
• 5 May 2027 — Q4 update (6 Jan – 5 Apr). Soft landing applies.
• 31 Jan 2028 — Final declaration + tax bill. Standard penalties.

How to halve the time per quarter

The slowest part is Step 2 (gathering) and Step 3 (reconciling). Two changes that work:

• Capture receipts daily, not quarterly. A receipt scanned on the day it happens needs zero memory work later. A receipt found in a coat pocket three months later needs you to remember what it was for.
• Use a dedicated business bank account. Mixed personal/business banking turns Step 3 into archaeology. A clean business account makes reconciliation a 20-minute job.

Bottom line

The quarterly update itself is small — you're submitting summary figures via approved software. The work is in the prep: gathering, reconciling, categorising. Front-load the prep into daily habits and each quarterly submission becomes a one-hour task instead of a one-weekend ordeal.

Sources: MTD ITSA categories and submission requirements per HMRC's MTD ITSA collection at gov.uk/government/collections/making-tax-digital-for-income-tax. Quarterly deadlines per HMRC published schedule.