Is It Too Late to Register for Making Tax Digital? (What to Do Now)

Quick answer:

If you’re mandated for MTD but haven’t registered yet, it’s not too late, you can still sign up and start keeping digital records, and because late-submission penalties on quarterly updates are waived for the 2026/27 transition year, catching up now carries little penalty risk, but you should act quickly before the relaxation ends.

A large share of eligible sole traders and landlords still haven’t registered. If that’s you, here’s exactly how to catch up.

What happens if you’re late to register for MTD?

Being late isn’t an instant fine. During the 2026/27 transitional year, late-submission penalties on quarterly updates are waived, so the immediate risk of catching up now is low. But the obligation to keep digital records and submit updates still stands, and the relaxation won’t last, see MTD penalties in the transition year.

Can you backfill records you didn’t keep?

If you’ve been trading since 6 April without digital records, you’ll need to reconstruct them from your bank statements and receipts. This is where a bank feed is invaluable, software that pulls your transaction history can rebuild much of the picture automatically, rather than you re-typing months of data. See digital record keeping for HMRC.

How to catch up, step by step

Confirm you’re actually mandated (see am I affected by Making Tax Digital?)
Choose MTD-compatible software (see best MTD software for sole traders)
Connect your bank so historic transactions flow in
Sign up with HMRC and authorise your software (how to sign up for MTD income tax)
Submit any updates you’ve missed and continue on schedule

Why act now even with penalties waived?

The waiver is a head start, not a free pass. Registering now lets you build the routine while mistakes are consequence-free, so you’re fully fluent before penalties resume. Leaving it risks a last-minute scramble exactly when enforcement tightens.

How CleanBooks AI gets you caught up fast

Because CleanBooks AI imports from your bank and lets Keeva™ categorise automatically, catching up is mostly connect-and-go rather than weeks of manual entry. Your dashboard and live tax estimate populate quickly, and outstanding quarterly updates can be assembled from your reconstructed records.

Behind on MTD? Catch up in an afternoon. Start free, 6 months free, no credit card.

Frequently asked questions

Is it too late to register for Making Tax Digital?

No. If you’re mandated but haven’t registered, you can still sign up and start keeping digital records. Late-submission penalties on quarterly updates are waived for 2026/27, so catching up now carries low penalty risk.

Will I be fined for registering late for MTD?

During the 2026/27 transition year, late-submission penalties on quarterly updates are waived. However, you must still keep digital records and submit updates, and other penalties such as late payment still apply.

Can I recreate digital records I should have kept earlier?

Yes. You can reconstruct records from bank statements and receipts. Software with a bank feed makes this far easier by importing your transaction history automatically rather than requiring manual re-entry.

How quickly can I get compliant if I’m behind?

With AI bookkeeping that imports from your bank and categorises automatically, you can often get compliant in a single session, connecting your bank, authorising HMRC, and assembling any outstanding updates.