Making Tax Digital deadlines: what we learned from the first update

The first quarterly reporting deadline for Making Tax Digital (MTD) has now passed, and the initial figures show that many people are still getting to grips with the new requirements.

Data from HMRC and ACCA indicates that more than half of the sole traders and landlords required to use MTD had not registered by the 7 August deadline. This highlights how significant the shift to quarterly reporting is for many, and why clear guidance is so important at this stage.

Our aim is to help you understand what the data tells us, what’s required going forward, and how to stay confident and compliant throughout the rollout.

What the missed MTG registrations tell us

The high number of missed registrations suggests that many taxpayers are still preparing for the move to digital record‑keeping and frequent reporting.

For some, this may be due to uncertainty around software, understanding the new obligations, or simply adjusting to a different way of working.

If you haven’t yet registered, or you’re unsure whether you need to, now is a good moment to take stock and make sure you’re ready for the next update period.  A little preparation now can make the transition much smoother

Making Tax Digital changes and why it matters

MTD replaces annual-only reporting with digital records and five submissions a year: four quarterly updates, and a final declaration.

This approach is designed to give you clearer, more up‑to‑date information about your tax position, helping you plan with greater confidence, and avoid unexpected year‑end adjustments.

It’s a shift towards more regular insight, rather than a single annual snapshot.

Upcoming MTD rollout phases

The making tax digital changes are happening in stages, with more taxpayers brought into the system over the next two years:

• April 2026: Mandatory for sole traders and landlords with gross income over £50,000
• April 2027: Threshold reduces to £30,000
• April 2028: Threshold reduces further to £20,000

These phased thresholds mean that even if you’re not required to register yet, it’s helpful to understand when you will be affected.

Knowing your timeline early gives you more room to prepare, choose suitable software, and build confidence with digital record‑keeping before it becomes mandatory.

A soft landing for 2026/27

HMRC has confirmed that no penalty points will be issued for late quarterly updates during the first year of MTD.

This soft landing is designed to give taxpayers time to adjust to digital record‑keeping and more frequent reporting, especially as many are still getting set up.

It’s important to remember that the obligations themselves haven’t changed. You’ll still need to keep digital records and submit quarterly updates, even though penalties won’t apply this year.

How JW Hinks can support you

We’re here to help you understand what MTD means for your business or property income, choose the right MTD compliant software, and stay confident throughout the transition.

If you’re unsure whether you need to register, or you’d like guidance on preparing your digital records, our taxation team is ready to support you.