Big news for accountants concerned with meeting MTD deadlines

HMRC has announced that it will begin signing up eligible sole traders and landlords to Making Tax Digital (MTD) for Income Tax for the 2026–27 tax year where they have not already registered themselves or through an agent. This applies to taxpayers with qualifying income above £50,000 in the 2024–25 tax year and signals the next stage of the MTD rollout.

For accountants and bookkeepers, the announcement highlights the importance of preparing clients well ahead of quarterly submission deadlines. Dext reports that a recent poll of more than 500 accountants and bookkeepers found that 65% were unable to submit at least one client's first quarterly update on time, demonstrating the operational challenges many firms are facing.

The key issue is not simply filing returns. MTD introduces a shift from annual compliance work to a continuous quarterly workflow that requires stronger processes for data collection, bookkeeping, client communication and deadline management. Firms that invest in scalable workflows, client onboarding and digital record-keeping are likely to be better positioned as more taxpayers come into scope.

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