14 September 2026
Soaring temperatures are not the only significant event of the summer, as the first quarterly update for Making Tax Digital (MTD) for Income Tax arrives on 7 August 2026.
The seismic change to the tax system has now taken effect, with the first quarterly update deadline having fallen on 7 August 2026, but registration is still lower than it should be.
Notably, a large portion of those unrepresented by an accountant are yet to register, indicating that there may be a deeper problem that needs addressing.
Is it possible to be compliant with Making Tax Digital without an accountant?
Technically, it is possible to be MTD compliant without an accountant, though it will make things significantly harder than it needs to be.
MTD is not dealing with small amounts of money, not at this current moment.
From April 2026, MTD obligations apply to all self-employed individuals and landlords with a qualifying income over £50,000 who need to keep digital records and submit quarterly updates to HMRC using compatible software. The threshold falls to £30,000 in 2027 and £20,000 in 2028, meaning that more people will need to figure out MTD over time.
An estimated 111,840 unrepresented landlords and self-employed individuals are still left to register despite this being mandatory from April 2026.
Each of those unrepresented individuals is facing a significant risk if they do not get everything in order before 7 August, but even unrepresented people who have registered are still taking a noticeable chance unnecessarily.
How do accountants help with Making Tax Digital?
An accountant can do more for those impacted by MTD than getting them registered, though they can do that too.
The rules around MTD have caused notable confusion, so an accountant can provide clarity around responsibilities and obligations.
One thing that may explain the lack of uptake is a limited understanding of who is affected by the rules and when.
Rather than being based on current income, the 2026 MTD obligations are determined by qualifying income in the 2024/25 tax year.
Once someone is required to use MTD, they generally need to continue using it until they have had three consecutive tax years in which their qualifying income is below the relevant threshold, subject to the applicable rules. This might result in many people currently sitting below the threshold being unaware that they are supposed to be getting their accounts in order.
Our expert team can review your finances to make sure you are adapting to the new requirements.
Getting set up with software involves knowing how to match your needs and budget, so we can offer guidance on this to prevent you from risking additional penalties.
HMRC are not set to penalise missed filings this year, but that will change in 2027.
This grace period should be used to get everything set up and ready so that you can start benefiting from a deeper engagement with your finances.
Through effective use of MTD, you should be in a stronger position to make smarter decisions with your money.
Our expert team is here to help you manage MTD obligations and make the most of the new opportunities that digitisation creates.
Get in touch if the time has come to take Making Tax Digital seriously.