Was There Something You Missed?
Have you missed the Making Tax Digital deadline?
The 7th August, marked a date that many business owners and landlords across Norfolk should have circled in their diary, whether they realised it or not. It is the first deadline for Making Tax Digital for Income Tax, known as MTD, and if your gross income from self employment or property income was over £50,000 on your 2024/25 tax return, your first quarterly update was due to be with HMRC today!
What the deadline actually covers
MTD for Income Tax became mandatory on 6 April 2026 for this first wave of sole traders and landlords. The quarterly update covers everything from 6 April to 5 July, a simple summary of income and expenses sent through MTD compatible software such as Xero or QuickBooks. No receipts, no long lists of transactions, just the totals HMRC needs to see. Our bookkeeping services cover getting this set up properly from the start.
That sounds straightforward enough, but it only works smoothly if the bookkeeping behind it has been kept up to date all quarter. Bank feeds need reconciling, expenses need coding correctly, and nothing should be sitting in a shoebox waiting for year end. This is exactly where a lot of people who will miss today's deadline came unstuck, not because the submission itself is difficult, but because the records underneath it were not ready in time.
Was there something you missed?
If the deadline has come and gone and you have not yet submitted, you are not alone. This first deadline has caught plenty of people off guard, particularly those juggling a business alongside everything else that comes with running one. The good news is that HMRC has confirmed a grace period for the 2026/27 tax year, so there are no penalty points for a late quarterly update this time round.
That grace period will not last forever though. From April 2027, the usual penalty point system returns, and missed deadlines start to carry real consequences. But beware as interest on any unpaid tax still applies as normal, so it is worth putting things right sooner rather than later, even while the pressure is off.
If a letter lands on your desk
Our advice for anyone who has missed today's deadline is simple. Do not wait until HMRC sends a letter to do something about it. If one does land on your desk, take it as your signal to get in touch with us straight away. At Logical Bookkeeping, we help clients across Norwich and Norfolk get set up with the right software and we keep their records digital and reconciled throughout the year. We take the stress out of quarterly reporting for good.
MTD is not going away, and the net is widening. Anyone with qualifying income over £30,000 joins the scheme from April 2027, followed by those over £20,000 in April 2028. If the deadline did not catch you, there is a good chance a future one has your name on it.
Whether you missed the deadline, are dreading the next one, or simply want your bookkeeping ready for whenever MTD applies to you, we are here to help. Book your free 45-minute consultation with Logical Bookkeeping and let us take Making Tax Digital off your to do list for good.
