HMRC has updated its guidance to say businesses will not be able to sign up for Making Tax Digital for Income Tax until 1pm on Tuesday 24 March because of planned maintenance. For many small firms, that may sound like a minor admin note. In reality, it is a useful nudge: if you are a sole trader or landlord likely to be brought into the new system from 6 April 2026, the window for getting organised is now very short.
The key group to watch is people with total annual income over £50,000 from self-employment and property. HMRC says they will be required to use Making Tax Digital for Income Tax from 6 April 2026. That means keeping digital records, sending quarterly updates through compatible software, and then completing the year-end tax return through that same digital process.
What has changed
The latest GOV.UK update is mainly operational rather than political. HMRC has not announced a delay to the rules. Instead, it has clarified that the sign-up service itself will be unavailable until the afternoon of 24 March while maintenance is carried out.
That matters because some business owners have been using the current period to decide whether to join early, test software, or get their records into better shape before the April 2026 start date. A short maintenance pause is not a crisis, but it does remove one excuse for leaving things until the very last minute once the service reopens.
Why it matters for SMEs
This is not just an accountant issue. A lot of smaller businesses still handle records in a patchwork way: a bit of bookkeeping software here, some spreadsheets there, and a folder of receipts that only becomes urgent near filing time. Making Tax Digital pushes that admin into a more regular rhythm.
For sole traders, landlords and microbusiness owners, the practical pressure is less about learning a new slogan and more about changing habits. You need to know which income sources are active, whether your current software is compatible, and whether your records are clean enough to support quarterly reporting without creating extra stress.
HMRC also says you must be registered for Self Assessment and have submitted a tax return in the last two years before you can sign up. If either of those basics is not in place, the problem is not the sign-up window. It is that your compliance groundwork may already be behind.
What businesses should do before 6 April
First, check whether the rules are likely to catch you from April 2026. The current trigger is total annual income over £50,000 from self-employment and property. If you are below that level, you may still be able to sign up voluntarily, but the urgency is different.
Second, look at your record keeping honestly. If your books are scattered across bank feeds, invoices, paper receipts and last-minute reconciliations, this is the time to tighten that up. The businesses that struggle most with new reporting rules are usually not the ones that lack effort. They are the ones trying to retrofit order into messy records under deadline pressure.
Third, speak to your accountant or software provider sooner rather than later. HMRC says you need software that works with Making Tax Digital for Income Tax, and not every business will want the same setup. A sole trader with straightforward income may need something simple. A business owner juggling several income streams may need more care.
Fourth, remember that the first year is not penalty-free across the board. HMRC says it will not apply penalty points for late quarterly updates in the 2026 to 2027 tax year for those required to use the system from April 2026, but penalties can still apply for late tax returns and late payment of tax. That is helpful breathing space, not a free pass to ignore the change.
If you want a broader refresher on what the system means in practice, our guide to Making Tax Digital for Income Tax covers the basics small businesses should be working through now.
The practical takeaway
The main news here is small but useful: the sign-up service reopens at 1pm on Tuesday 24 March, and the April 2026 start date for many sole traders and landlords still stands. For SMEs, the smarter response is not to panic. It is to use the next couple of weeks to make sure your records, software and advice are in better shape than they were at the start of the year.
For busy owners, this is the sort of change that can drift into the background until it suddenly becomes urgent. If Making Tax Digital is likely to affect you next April, now is the moment to turn it from a vague future task into a proper plan.
Sources
- HM Revenue & Customs, Sign up for Making Tax Digital for Income Tax, updated 20 March 2026
- HM Revenue & Customs, Use Making Tax Digital for Income Tax, accessed 21 March 2026
