Missed the April 2026 MTD deadline? Here's what to do now

Making Tax Digital for Income Tax became mandatory for most sole traders and landlords earning over £50,000 from 6 April 2026. If you haven't registered yet, you're technically in breach of your HMRC obligations. But the situation is recoverable — and acting now is significantly better than continuing to wait.

First: are you actually in scope?

Before worrying about a missed deadline, confirm whether MTD applies to you. MTD for Income Tax is mandatory from April 2026 if:

• You are a sole trader (self-employed) or landlord (UK property income)
• Your qualifying income — gross income from self-employment plus gross UK property income — exceeded £50,000 in a prior tax year

The threshold is based on gross income before expenses. If your combined sole trader and rental income was below £50,000, you are not yet required to use MTD (the £30,000 threshold applies from April 2027).

If you're unsure whether you're in scope, check your previous Self Assessment returns or speak to your accountant.

What happens if you didn't register?

If you are in scope and didn't register before 6 April 2026, you are in breach of the MTD regulations from that date. The practical consequences depend on what happens next:

Penalty points for non-compliance

HMRC's penalty framework for MTD non-compliance includes points for missed quarterly submissions and potential failure-to-notify penalties for not registering. In practice, HMRC's stated position for 2026–27 includes transitional relief for late quarterly submissions — no penalty points will be issued for late Q1–Q4 submissions in the first year.

However, failure to notify your obligation to comply with MTD is a separate matter and is not covered by the transitional relief. HMRC can charge a failure-to-notify penalty of up to 30% of potential lost tax in deliberate cases (though first-time, unprompted disclosures attract much lower penalties — typically nil to 10%).

What to do immediately

Step 1: Confirm your scope and prior year income

Pull up your 2024–25 Self Assessment return (the most recent filed). Check your gross self-employment income and gross UK property income. If the combined total exceeds £50,000, you are in scope from April 2026.

Step 2: Register for MTD now

Registration is done through the HMRC website. You'll need your Government Gateway credentials. The process takes 15–30 minutes and is described step by step in our MTD registration guide.

When you register late, HMRC will note the registration date. The system will create your obligations from the start of the 2026–27 tax year (6 April 2026) rather than from your registration date — so your obligations include Q1 even though you registered late.

Step 3: Choose and set up MTD-compatible software

You need HMRC-recognised MTD software before you can submit. See our MTD software comparison for an overview of your options. Regulas is free to join and connects directly to HMRC for submission.

Step 4: Reconstruct your Q1 records

Q1 covers 6 April to 5 July 2026, with a submission deadline of 5 August 2026. If you haven't been keeping digital records, you still have time to reconstruct them from:

• Bank statements for April–June 2026
• Invoices issued or received
• PayPal, Stripe, or platform payment records
• Mileage logs or expense records

Categorise income and expenses into HMRC's standard categories. If records are incomplete, HMRC allows reasonable estimates to be submitted and corrected in later quarters or at the final declaration.

Step 5: Submit Q1 by 5 August

Once registered and with software in place, submit your Q1 update before the deadline. Given that you're registering mid-way through Q1 (the period has already closed on 5 July), you can submit Q1 as soon as your registration is confirmed and your records are ready.

Should you speak to an accountant?

If you have a straightforward sole trader or landlord situation, you can handle MTD registration and quarterly submissions yourself. If any of the following apply, speaking to an accountant first is advisable:

• You have multiple business sources with different income streams
• You're uncertain whether your income is above the threshold
• You have complex expenses, capital allowances, or property transactions
• You're concerned about the failure-to-notify position and want specific advice

HMRC's approach to late registration is generally pragmatic for individuals who come forward voluntarily, but professional advice protects you if there are any complications.

What about the £30,000 threshold group?

If your qualifying income is between £30,000 and £50,000, you are not yet required to use MTD. The April 2027 mandation date applies to this group. You can voluntarily join MTD now, which some people choose to do in order to build the habit before it becomes mandatory.

If you're in this band, there's nothing to worry about yet — but starting to keep digital records now makes the April 2027 transition much smoother.