I’ve missed the Making Tax Digital deadline. What do I do?
From September 2026, HMRC are going to start auto-enrolling anyone who they believe should be in the new Making Tax Digital tax system who hasn’t signed up voluntarily.
The disadvantage of HMRC signing you up is that you lose the opportunity to check the business and rental property details that HMRC hold about you.
There are only a few grounds for exemption for MTD. Some exemptions are automatic, others need you to actively apply to HMRC for exemption. You can find more details about who might be exempt from MTD in HMRC’s guidance.
428,000 sole traders and landlords missed the first MTD deadline. 294,000 haven’t signed up for MTD yet. Even if you fundamentally disagree with MTD, ignoring its existence won’t make it go away.
HMRC won’t be issuing penalty points or imposing fines for missed quarterly updates this year. They realise it’s a big change. The purpose of the “soft landing” is to give you time to adapt your record-keeping system to comply.
Spreadsheets can still be used for Making Tax Digital, but you’ll need bridging software to submit the figures to HMRC.
The easiest way to comply with Making Tax Digital is to get HMRC-recognised accounting software. There are plenty of software packages to choose from, but you need to have an idea of what you want the software to be able to do. Not all software can do everything. Here is the link to HMRC’s guidance on how to choose the right software.
Some software can only do the quarterly returns. If you are used to doing your own Self Assessment Tax Return, you’ll also need MTD-compatible software to submit your end of year Tax Return. You won’t be able to submit your Making Tax Digital Tax Return via your Government Gateway account.
If you’ve missed the first deadline and don’t know where to start, please get in touch via the Springreach Training & Coaching website. I’m a qualified accountant, keen to support people who want to continue to handle their own tax affairs post-Making Tax Digital. For a one-off fee, I can assess which software packages might suit you and your business best, set your chosen software up, show you how to use it, help you submit the outstanding update, and offer optional ongoing support until you’re ready to go solo – helping maintain your independence in this period of change.
Why wait until Making Tax Digital applies to you? If your total income from self-employment and rental property was over £30,000 in the 2025-26 tax year, you’ll need to comply with Making Tax Digital from next April. Take the pressure off and start keeping digital records this year. You can register now to join MTD from April 2027. Get into the habit of updating your bookkeeping regularly, without the pressure of any deadlines, and you’ll be able to relax – safe in the knowledge that you’re all set for next year.
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