HMRC signed your client up for MTD? A practice checklist before 7 November 2026

HMRC has signed your client up for Making Tax Digital. What now?

GOV.UK says HMRC is signing up sole traders and landlords who had qualifying income over £50,000 in the 2024 to 2025 tax year and have not signed up to Making Tax Digital for Income Tax. It is doing this in stages from September 2026 and sends a confirmation. Many of these clients keep paper or spreadsheet records. This is a short checklist for practices handling them before the next quarterly update on 7 November 2026.

A checklist for each newly signed-up client

Check they are in scope (qualifying income over £50,000 in 2024 to 2025) and whether they can apply for an exemption, for example if they are digitally excluded.
Get their authorisation. GOV.UK says agents need authorisation before acting for a client and use their agent services account.
Choose how they will send updates: MTD-compatible software, or spreadsheets plus bridging software.
Catch up their digital records and send any overdue quarterly updates.
Diary 7 November 2026 for the update covering 6 April to 5 October 2026. Each update covers the tax year to date.

Penalties in 2026 to 2027

GOV.UK says: "You'll not get penalty points for missing a quarterly update deadline for the 2026 to 2027 tax year." Penalty points still apply if the tax return is late, so updates should still go in on time.

Read the GOV.UK guidance: Check what to do if HMRC has signed you up for Making Tax Digital for Income Tax

Clients who want to stay on spreadsheets

Some clients will not move to new software this year. A clear spreadsheet with income and expenses in the right categories each quarter makes the bridging step quicker and cuts back-and-forth with the client.

The SoleTraderSheets Practice Licence gives your practice branded Self Assessment and MTD record-keeping workbooks for every sole-trader client: £39 a month or £349 a year. No VAT charged. 14-day free trial. Cancel any time.

See the Practice Licence

The workbooks organise records. Sending updates to HMRC needs MTD-compatible software or bridging software. Not tax advice. Not affiliated with, or endorsed by, HMRC.