Recent research from Azets found that around two-thirds of clients affected by MTD had still not registered.

That is a worrying figure, especially now we are in July, and the first submission deadline is only weeks away. If you are within scope and have not registered yet, now is the time to act.

If you fall within this scope and have not yet registered, it is crucial to act now.

Understanding why this matters is essential.

Registering for MTD is not the same as simply using bookkeeping software.

You need to make sure:

• You are signed up correctly
• Your software is HMRC-compatible
• Your records are digital
• Your income and expenses are being kept up to date
• You are ready for quarterly submissions

Leaving it too late could mean rushing software setup, moving records across, and trying to fix bookkeeping gaps close to the deadline.

Who needs to register?

MTD for Income Tax now applies to:

• Sole traders with gross income over £50,000
• Landlords with gross property income over £50,000
• Those with combined self-employment and property income over £50,000

The first quarterly period is already underway and runs from 6 April to 5 July 2026.

The first submission deadline is 7 August 2026.

The threshold will be reduced to £30,000 from April 2027 and to £20,000 from April 2028, bringing many more people into scope.

Why people are delaying

Some people do not realise they are affected. Others assume their accountant or software has already handled it. Some are simply putting it off because MTD feels complicated.

But delaying registration does not delay the rules.

If you are affected, you still need to comply.

What happens next?

The first year includes a soft landing, so no penalty points will be issued for late quarterly updates during 2026/27. But that does not mean you can ignore the deadlines.

You still need to submit updates. More importantly, you need to use the first year to build good habits before penalties become a real risk.