Why Waiting Until July Is Too Late for the Making Tax Digital Deadline
The first Making Tax Digital deadline is now firmly on the horizon. For businesses and landlords affected by the new rules, the first quarterly update covering 6 April to 5 July 2026 must be submitted by 7 August 2026.
At first glance, that may seem like plenty of time. However, many businesses underestimate how much preparation is required. Waiting until July to start thinking about the Making Tax Digital deadline could leave you rushing to organise records, learn new software, and correct bookkeeping issues at the last minute.
Making Tax Digital starts long before the deadline
The first submission may not be due until August, but the records required for it have been accumulating since 6 April.
Every sale, expense, receipt, and transaction needs to be recorded accurately throughout the quarter.
If bookkeeping is left until July, you could be faced with three months’ worth of records to sort through in a short space of time.
Software takes time to set up.
Making Tax Digital requires compatible software.
If you are moving from spreadsheets, paper records, or a different bookkeeping system, there may be work involved in:
- Setting up your accounts
- Connecting bank feeds
- Importing existing data
- Learning new processes
- Checking everything is working correctly
The sooner this is completed, the smoother your first submission is likely to be.
Small bookkeeping issues become bigger problems
Many businesses discover bookkeeping issues when they start preparing reports.
Common examples include:
- Missing expenses
- Duplicate transactions
- Unreconciled bank accounts
- Incorrect categories
- Missing receipts
Finding and correcting these issues takes time. Leaving everything until the last few weeks before a deadline creates unnecessary pressure.
Good habits are easier to build gradually
Making Tax Digital is not just a software change. It is a change in how records are kept.
Businesses that update their records regularly throughout the quarter will generally find reporting much easier.
Waiting until the deadline approaches often means rushing to catch up rather than building a sustainable process.
The first year is a chance to prepare properly.
HMRC has introduced a soft landing period for the first year of MTD for Income Tax. This means no penalty points will be issued for late quarterly updates during the 2026/27 tax year.
That does not mean deadlines should be ignored.
The first year provides an opportunity to establish good bookkeeping habits and ensure your systems work properly before penalties become a real risk.
How Rosemary Bookkeeping can help
If you are unsure whether your records, software, or processes are ready, now is the ideal time to review them.
Your local Rosemary Bookkeeper can help you:
- Prepare for your first MTD submission
- Check your bookkeeping records
- Set up compatible software
- Create a process that works for your business
The earlier you prepare, the easier MTD becomes.
