Making Tax Digital has started – Are you ready for the first submission?
Making Tax Digital (MTD) for Income Tax has now begun, years after it was first announced and when it was due to take effect.
Even as recently as the week before the shift, only 21 per cent of affected taxpayers were registered for MTD.
The first submission will arrive soon and whether you have registered yet or not, you will be expected to make that deadline.
Either way, we are taking a look at what you need to do now before the first deadline hits.
What will the first deadline be for Making Tax Digital?
The first MTD deadline will be 7 August 2026.
Technically, this means that you have until then to be fully established with MTD compliance and this could explain the low uptake so far.
However, it is unwise to assume that adapting to the largest tax overhaul in decades will be a simple process.
Leaving MTD preparations until the first deadline is due will likely cause that deadline to be missed.
While there are no penalties for missing deadlines this year, these early days of MTD are the time to get a handle on the situation.
Who should be preparing for Making Tax Digital now?
Anyone due to fall under the scope of MTD over the next few years should consider taking the time now to prepare.
While it is now compulsory for sole traders, landlords and self-employed individuals with a qualifying income over £50,000 to be MTD compliant, those with incomes over £30,000 and even over £20,000 would benefit from getting ready now.
This is due to the grace period of penalty waiving only being in place for the 2026/2027 tax year, meaning the first cohort can trial and error their way through in a way that subsequent cohorts will not be able to.
As such, voluntarily adopting MTD now alongside those for whom it is mandatory gives you a chance to fully swap over to digital record keeping and quarterly filings without the fear of penalties.
The first penalty will be the regular non-payment penalty before the missed filing penalties take hold from 7 August 2027.
Whichever cohort you are in for MTD, we can help you prepare for the first submission.
Our experts can review your systems and help align you with MTD-compliant software that does what you need it to.
Now is the time to review your processes and records to ensure that you are ready for August.
The first deadline being squarely in the middle of the summer holidays means you might be too busy to manage it effectively when the time comes.
This makes early preparation even more vital, as you can have everything set up for a stress-free summer.
Speak to our team to take the stress out of Making Tax Digital compliance.
