MTD records checklist for sole traders, every quarter.

An MTD records checklist for sole traders is the list your practice sends each sole trader client after every quarter: bank and card statements, income records, expense receipts and a note on anything unusual. Sent the same way four times a year, it gets the records in with time to prepare the quarterly update before HMRC's deadline.

This guide is for the practice, not the taxpayer. It covers who is in Making Tax Digital for Income Tax now, the checklist itself with a line on why each item is needed, and how to make the quarter a habit.

Who's in MTD now, and who joins next

Sole traders and landlords with qualifying income over £50,000 have had to use Making Tax Digital for Income Tax since 6 April 2026. Those over £30,000 join from 6 April 2027, and those over £20,000 from 6 April 2028.

Each threshold is measured on an earlier tax year: the £30,000 group is decided by 2025 to 2026 income. Checked on 26 October 2026 against Find out if and when you need to use Making Tax Digital for Income Tax.

What the quarterly update needs from your client

The quarterly update is a set of totals by income and expense category, worked out by MTD software from the digital records. HMRC doesn't receive individual receipts or invoices. Each digital record needs an amount, a date and a category.

So the documents you ask for are the source behind those records. GOV.UK says the original records or copies, such as bank statements and invoices, still have to be kept. Checked on 26 October 2026 against Create digital records and Business records if you're self-employed.

A client with two sole trader businesses needs separate digital records and a separate update for each. Send them a separate request for each business, so the records never mix.

The MTD records checklist for sole traders

These are typical items to tailor to each client. Remove what doesn't apply, add a line for each extra account, and keep the "why we ask" lines: clients send things faster when they know what they're for.

Bank and cards

Income

Expenses

Anything unusual

Things worth a note:

• equipment, a vehicle or tools bought
• a new customer, platform or income source
• a break in trading, or stopping altogether
• money paid in that isn't income, such as a loan or the client's own savings
• a new or closed bank account
• an item above with nothing to send this quarter

Copy the checklist

MTD QUARTERLY RECORDS: [CLIENT NAME]
Business: [business name, if the client has more than one]
Quarter: [first day] to [last day]
Please send by: [date]

BANK AND CARDS
- Business bank statements, for every account used for the
  business, covering the whole quarter
  Why we ask: most income and costs pass through the bank.
- Credit card statements, for any card used for business costs
  Why we ask: card spending rarely shows in detail on the
  bank statement.

INCOME
- Sales invoices issued in the quarter, or your own record
  of takings
  Why we ask: the bank shows only what was paid in.
- Payout reports from card readers, marketplaces or apps
  (if you use them)
  Why we ask: payouts arrive net of fees and in batches.

EXPENSES
- Purchase invoices and receipts for business costs
  Why we ask: each cost needs a category.
- A list of business costs paid in cash
  Why we ask: cash spending leaves no trace in the bank.
- Mileage log (only if you claim mileage)
  Why we ask: a mileage claim is worked out from business miles.

ANYTHING UNUSUAL
- Anything unusual this quarter?
  For example: equipment bought, a new income source, a break
  in trading, money paid in that isn't income, a new or closed
  bank account, or an item above with nothing to send.

Making it a habit

Four quarters a year only work if every quarter runs the same way. The client should know what's coming and when, without being asked.

The same request every quarter

Send the same list after each quarter ends, with the same item names. By the second quarter your client knows which statements to download and where the receipts are.

Change the list only when the business changes, such as a new account or a new platform. Ask about that in the "anything unusual" answer, then add it for next time.

A fixed due date before the 7th

HMRC's deadlines are the same every year. Send the request on the 8th of the month after the quarter ends, and set the due date 21 days later. That leaves over a week to chase and prepare the update before the 7th.

These are HMRC's standard update periods, and each update covers the tax year so far. Clients whose accounting period ends on 31 March may use calendar update periods instead (quarters ending 30 June, 30 September, 31 December and 31 March), with the same deadlines. Checked on 26 October 2026 against Send quarterly updates.

Clients who send everything at year end

Some clients have always sent a box of paperwork in January, and will try to keep doing it. Quarterly updates still have to go in, and HMRC says an update is due even for a quarter with no income or costs.

• Ask for less, not nothing. Bank statements are a few minutes' work and show most of what happened in the quarter. Start with those, and add the rest once the habit sticks.
• Explain the penalty timeline plainly. HMRC won't apply penalty points for late quarterly updates in the 2026 to 2027 tax year. After that, each late update gets a point, and 4 points bring a £200 penalty.
• Use the next update to catch up. Each update covers the tax year so far, so corrections and late records go into the next one. Missing records don't have to wait for year end.
• Pick up the phone after the second miss. Reminders work for a missing item or two. A client who has sent nothing for two quarters usually needs a conversation about how they want to work with you.

The penalty rules are on Send quarterly updates (checked on 26 October 2026).

How to do this in GarnerDocs

GarnerDocs collects the quarter's records. Your MTD software keeps the digital records and sends the update to HMRC: GarnerDocs isn't MTD software and doesn't connect to HMRC.

• The checklist, ready to send. New workspaces include MTD Quarterly Update – Sole Trader, with the items above. "Anything unusual this quarter?" is a short answer your client types instead of uploading a file.
• One quarterly workflow. Choose Quarterly, UK tax quarters and Previous quarter, run it on the 8th and set the due date 21 days later. Each request is titled with the quarter, such as Q3 2026–27.
• Drafts or automatic sending. New workflows save drafts for you to check. Sending automatically asks you to confirm first.
• No account for your client. They open the link from the email and upload from a phone or computer, then come back to the same link for the rest.
• Reminders that stop. Each reminder lists only what's still missing, and they stop once everything is in.
• Replacements with a note. A statement that stops a week short goes back with a note your client sees next to that document.

See Collect MTD quarterly records automatically.

Sources

• Find out if and when you need to use Making Tax Digital for Income Tax, HMRC. Checked on 26 October 2026.
• Use Making Tax Digital for Income Tax: send quarterly updates, HMRC. Checked on 26 October 2026.
• Use Making Tax Digital for Income Tax: create digital records, HMRC. Checked on 26 October 2026.
• Business records if you're self-employed: what records to keep, GOV.UK. Checked on 26 October 2026.

This guide is general information, not legal or tax advice. Check the rules that apply to each client.