MTD quarterly updates for sole trader builders: what you send and when

An MTD quarterly update is a summary of your business income and expenses, by category, from 6 April to the end of the quarter, sent from compatible software. Deadlines are 7 August, 7 November, 7 February and 7 May. If you're a sole trader builder who turned over more than £30,000 in 2025 to 2026, your first update is due by 7 August 2027.

When are the quarterly updates due?

The update periods follow the tax year by default (standard periods). If your accounts run 1 April to 31 March, you can pick calendar periods instead, but you must choose before your first update and can't change after. Either way, the deadlines are the same.

If you started in April 2026 because your income was over £50,000, your second update is due 7 November 2026.

What goes in a quarterly update?

Totals for each income and expense category you used to make your digital records, from 6 April to the end of the period. Each update replaces the last, because it's cumulative. You send one per business: a builder who also lets a flat sends one for the trade and one for the property.

Worked example

A sole trader builder's first two updates

A sole trader builder doing extensions and subcontract work. Cumulative figures from 6 April 2027.

Q1 turnover, including CIS work at grossto 5 July	£24,600
Q1 cost of materialsmerchants and supplier invoices	£9,800
Q1 subcontractor costslabourer and plasterer	£4,200
Q1 van and travelfuel, insurance, lease	£1,900
Q1 other expensesphone, tools, insurance, accountant	£1,100
Q1 profit HMRC sees in its estimate£24,600 − £17,000	£7,600
Q2 cumulative turnoverto 5 October: Q1 £24,600 + Q2 £28,400	£53,000
Q2 cumulative expenses£17,000 + Q2 £19,300	£36,300
Q2 cumulative profit£53,000 − £36,300	£16,700

If you spot a mistake in Q1, you correct it in your records and it flows through in the Q2 update, because Q2 covers the whole period from 6 April. You don't resubmit Q1.

How do you make sending one take minutes?

The update itself takes minutes in software. The work is having every receipt in the right category by the deadline. Builders lose time to merchant receipts in the van, split orders across jobs and cash paid to labourers.

1. Capture receipts the day you get them.

   Photograph and file each one in your software with its date, amount and category. A digital record needs all three.

2. Record income when you invoice.

   Gross amounts, including the CIS deduction. Keep each contractor's monthly payment and deduction statement.

3. Reconcile the bank once a month.

   Match every bank line to a record. Anything left over at the quarter end is a missing receipt.

4. Check categories at month end.

   Materials, subcontractor costs, van, premises, other. These match the Self Assessment categories.

5. Send the update in the first week after the period ends.

   You can send any time after the period closes, or up to 10 days before if nothing else is coming in. Don't leave it to the 7th.

HMRC shows you an estimate of your tax bill after each update. Set that amount aside in a separate account each quarter, and January stops being a shock.

What if you send it late or have nothing to report?

You must still send an update in a quarter with no income or expenses. Each missed deadline earns one penalty point; at 4 points HMRC charges £200. Points expire after a period of compliance. HMRC didn't give points for late updates in the 2026 to 2027 tax year, the first year for the over-£50,000 group, but hasn't announced the same for 2027 to 2028.

What still happens at the end of the year?

You make your final declaration through your software by 31 January after the tax year ends. That's where adjustments, allowances, other income and CIS deductions go in, and where you confirm the figures are complete. You can't submit the final return until all four updates are in. Keep records for at least 5 years after the 31 January deadline.

Not sure whether you're in MTD at all? Start with Making Tax Digital for tradespeople. For anything beyond the basic sole trader case, including a partnership share or several trades, your accountant can file updates for you as your agent.

N

Where Nexley fits

Nexley is the AI back office for UK trade firms: five AI assistants run your tenders, quotes, buying, scheduling and invoicing. It connects to the tools you already work in, you run it all from WhatsApp, and you approve everything. £799 a month.

For MTD, the slow part is the receipts. Nexley takes the photos and supplier invoices you send over WhatsApp, records them against the right job and category, and logs CIS deductions from your contractors' statements, so the quarter is up to date when the deadline comes. You or your accountant send the update.

Start 7 days freeSee back office automation

Common questions

Sources

1. GOV.UK: Send quarterly updates
2. GOV.UK: Using Making Tax Digital for Income Tax for the first time
3. GOV.UK: Get your software ready
4. GOV.UK: Deadline approaches for first Making Tax Digital quarterly update
5. GOV.UK: Pay tax and claim back CIS deductions
6. GOV.UK: How long to keep your records

Every rule, rate and date above was checked against these sources on the date shown at the top.