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Making Tax Digital Sole Trader Deadlines 6 min read

It’s Not Too Late: How to Get Ready for Making Tax Digital Before the First Deadline

Making Tax Digital has officially started — and most of the people affected still have not done anything about it. Here is how to catch up, step by step, without the panic.

Let us start with the honest truth. Making Tax Digital for Income Tax went live on 6 April 2026 for sole traders and landlords with qualifying income over £50,000 — and a large share of the people affected have done absolutely nothing about it yet.

If that is you, take a breath. You are not in trouble, and you are certainly not alone: fewer than one in ten of those affected had signed up ahead of launch. But with the first quarterly deadline landing on 5 August 2026, this is the moment to catch up. The genuinely good news is that catching up is a much smaller job than most people fear.

First: Check Whether MTD Actually Applies to You

Before doing anything, work out whether you are in scope. The first phase applies to individuals earning more than £50,000 from self-employment or property income. From April 2027 the threshold drops to £30,000, bringing the next wave in. If you are below both thresholds, Self Assessment carries on as normal for now — but the habits below will still make your life easier.

What You Actually Have to Do

For those in scope, MTD boils down to three things:

  • keep digital records of income and expenses
  • send HMRC a quarterly update (deadlines fall on 5 August, 5 November, 5 February and 5 May)
  • complete a final end-of-year declaration that replaces the traditional tax return

A quarterly update is not a tax return. It is a summary of income and expenses for the quarter — no tax calculations, no payments attached. Most of the fear around MTD comes from imagining four Januaries a year, and that simply is not what this is.

Your Catch-Up Plan

Here is the practical path from “done nothing” to “first update submitted”:

  • Gather what you have since 6 April. Bank statements, invoices, receipts, CIS statements. The first quarter runs 6 April to 5 July, so you are reconstructing three months — not a year.
  • Choose MTD-compatible software or a service. The record-keeping and submissions have to go through something HMRC recognises. Pick one tool and stop researching.
  • Get the quarter recorded. For most sole traders this is an afternoon’s work, not a lost weekend.
  • Submit the update by 5 August. Then set a reminder for 5 November.
  • Switch to little and often. A few minutes a week keeps every future quarter painless.

What If You Miss the First Deadline?

Do not panic, and do not give up. HMRC’s penalty system for MTD is points-based: a late quarterly update adds a penalty point, and a £200 penalty only arrives once you reach four points. One late update is not a fine — but points accumulate quietly, so the sooner you get back on track, the better.

The Bottom Line

Being behind on Making Tax Digital is common, fixable and nothing to be ashamed of. One focused afternoon gets the first quarter recorded, and one submission by 5 August gets you fully caught up.

123Tax exists for exactly this moment: send us your income and receipts over WhatsApp, and we get your records digital and your quarterly updates filed — no app, no spreadsheets, no portal logins.

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