You've submitted your Q1 quarterly update for the period 6 April to 5 July 2026, and you're wondering what happens next. The good news is that filing your first quarterly update is the hardest part - you've crossed the MTD threshold and proved your system works. But there are several important tasks to complete now that your August update is submitted, and understanding what comes next will keep you organised and compliant.

This post covers exactly what to do after submitting your Q1 update, from checking HMRC's confirmation through to preparing for your Q2 deadline on 7 November 2026.

Check Your HMRC Confirmation

The first thing to do after submitting your quarterly update is verify that HMRC has received and accepted it. Your MTD software should provide an immediate confirmation, but you need to check this has been properly processed.

What to Look For

Your software will display a submission receipt with a unique reference number. This typically appears as a long alphanumeric code starting with letters like "XXIT" followed by numbers. Take a screenshot of this confirmation or save it as a PDF.

Within 24-48 hours, you should also receive confirmation through your Government Gateway account. Log in and check that your Q1 update appears in your MTD submission history.

Warning: If you don't see confirmation within 72 hours, contact your software provider immediately. A failed submission that you thought went through could result in late filing penalties.

Common Confirmation Issues

Sometimes submissions appear to go through but actually fail at HMRC's end. This can happen due to:

If you suspect a problem, check the MTD service status and resubmit if necessary. It's better to submit twice than miss the deadline.

Archive Your Q1 Records Properly

Now that Q1 is submitted, you need to secure your records for the period 6 April to 5 July 2026. HMRC requires you to keep these records for at least five years after the 31 January following the relevant tax year.

Digital Record Storage

Your MTD software should automatically store your submitted data, but don't rely on this alone. Export or backup your Q1 records separately:

Physical Document Storage

If you have paper receipts or documents, file them systematically. Many sole traders and landlords use a simple monthly filing system within each quarter. Label everything clearly and store in a secure location.

Consider scanning important paper documents to create digital backups. This makes them easier to find later and protects against loss or damage.

Note: You submitted Q1 data for April to July, but your records must be kept until January 2033 (five years after 31 January 2028, when the 2026-27 tax return is due).

Extract Key Financial Data for Q2 Planning

Your Q1 submission contains valuable information for planning the rest of your tax year. Take time to analyse what you've submitted and use it to improve your Q2 approach.

Review Your Q1 Performance

Look at the key figures you submitted:

If you discovered gaps in your expense tracking during Q1, now is the perfect time to address them. Check our guide on fixing messy expense records if you need to improve your system.

Identify Missed Allowances

Review the allowances and adjustments you claimed in Q1. Common items that sole traders and landlords forget include:

Make a note to track these more carefully in Q2 if you missed them in your first quarter.

Plan Your Cash Flow

Use your Q1 profit figure to estimate your potential tax liability. Remember that quarterly updates don't trigger immediate tax payments, but you'll need to pay the full year's tax by 31 January 2028.

If Q1 shows a healthy profit, consider setting aside money regularly for your tax bill. A simple rule is to save 20-25% of your net profit for basic rate taxpayers, or 40-45% for higher rate taxpayers.

Understanding Your Q2 Deadline: 7 November 2026

Your next quarterly update covers the period 6 July to 5 October 2026 and must be submitted by 7 November 2026. That gives you exactly one month from the end of the quarter to file.

Q2 vs Q1: Key Differences

Q2 filing is generally easier than Q1 because:

However, Q2 has some unique considerations:

Start Q2 Preparation Early

Don't wait until October to start thinking about Q2. Begin good habits now:

Check our complete MTD deadline calendar to see all your upcoming dates for the year.

Set Up Quarterly Review Processes

Now that you've completed your first MTD cycle, establish regular review processes to make future quarters smoother.

Monthly Mini-Reviews

Don't wait until the end of each quarter to review your figures. Set up monthly checks:

Software Maintenance

Your MTD software needs regular maintenance to work effectively:

If you're using bridging software like AffordableMTD, ensure your underlying spreadsheet or accounting system stays organised and accurate.

Plan for Year-End and Your Final Tax Return

Although you've only submitted Q1, it's worth understanding how quarterly updates fit into your annual tax obligations.

Quarterly Updates vs Final Tax Return

Your quarterly updates are not your final tax return. They're provisional figures that help HMRC track your progress through the year. You'll still need to submit a final tax return by 31 January 2028.

The final return allows you to:

Understanding this distinction helps you focus on accuracy rather than perfection in your quarterly updates. For more detail, read our explanation of quarterly updates vs final tax returns.

Track Annual Allowances

Some allowances apply annually rather than quarterly. Keep track of:

Monitor how much you've used in Q1 and plan your spending accordingly for the rest of the year.

Note: If you make mistakes in your quarterly updates, you can correct them later. Check our guide on amending submitted quarterly updates if you discover errors.

Common Post-Submission Issues

Even after successful submission, problems can arise. Here are the most common issues and how to handle them.

Discovery of Errors

If you find errors in your submitted Q1 update, don't panic. Small errors can often be corrected in your next quarterly update or final tax return. Significant errors should be amended promptly.

HMRC Queries

HMRC may contact you about your submission, especially if figures look unusual compared to previous years or similar businesses. Common triggers include:

Always respond to HMRC queries promptly and have your supporting records ready.

Software Problems

If your MTD software develops problems after submission, address them quickly. You need reliable software for Q2, Q3, and Q4 submissions. Consider switching if your current software proves unreliable.

Need Reliable MTD Software for Q2?

If your current MTD software caused problems during Q1 filing, switch to AffordableMTD before Q2. Our bridging software works with your existing bookkeeping system.

Get Started Free

Submitting your Q1 quarterly update is a significant milestone, but it's just the beginning of your MTD journey. By following these post-submission steps - confirming receipt, archiving records, analysing your data, and preparing for Q2 - you'll build a robust system that makes future quarters much easier. Remember, each quarterly update is a learning opportunity to improve your processes and ensure compliance with MTD requirements.