Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer The most common Making Tax Digital mistakes are not keeping digital records, breaking the digital link by retyping figures between systems, using software that is not compatible, missing filing deadlines, and ignoring the Income Tax thresholds that bring you into the scheme from April 2026.

The mistakes that cost the most

  1. Not keeping digital records. Making Tax Digital requires records to be kept digitally, not on paper or in your head.
  2. Breaking the digital link. Copying figures by hand between a spreadsheet and your software breaks the required digital trail.
  3. Using the wrong software. Only compatible software can file. A general spreadsheet alone is not enough without bridging software.
  4. Missing deadlines. The points based penalty system adds up for late VAT returns, and quarterly Income Tax updates will work similarly.
  5. Ignoring the thresholds. Income Tax joins from April 2026 for income over £50,000, and many people are unaware they are affected.

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Frequently asked questions

What is the most common Making Tax Digital mistake?

Breaking the digital link by retyping figures between a spreadsheet and your software. Making Tax Digital requires the figures to flow digitally, without manual re keying.

Do I have to use specific software for MTD?

Yes. You must keep digital records and file through compatible software. A general spreadsheet on its own is not enough unless linked to bridging software.

What happens if I miss an MTD deadline?

A points based penalty system applies. Each late submission adds a point, and once you reach the threshold a penalty applies, with more for further defaults, plus interest on late payments.

When does MTD for Income Tax start?

April 2026 for self employed people and landlords with qualifying income over £50,000, then April 2027 for over £30,000 and April 2028 for over £20,000.

How do I know if MTD affects me?

If you are VAT registered it already applies. For Income Tax, check your qualifying income against the thresholds, or ask us to confirm when you are brought in.