Don’t believe EVERY headline you read (unless it’s from me)
You know the old saying, “Don’t believe everything you read in the papers”?
Well, last week the Daily Express gave us a perfect example — and it was enough to make this Singing Accountant hit a wrong note.
They ran a piece on Making Tax Digital for Income Tax that, shall we say, got its wires (and penalties) crossed. It confidently told the nation that if you’re late with your new quarterly MTD updates, you’d get an immediate £100 fine, then £10 a day, then £300.
Sounds scary, right?
The problem? That’s the old annual tax return penalty regime — not the new quarterly one.
Here’s the reality:
If you’re late with a quarterly update, you get one penalty point. Four points in two years = a fine. In the 2025/26 testing phase, there are no penalties for late quarters (thank goodness, because some of the software is still finding its voice). Annual returns are still under the old rules — so yes, still best to file them on time.
So, to my fellow musicians, freelancers and landlords: take headlines with a pinch of salt, and always check with HMRC or, better yet, with me.
Now, about the software question I get circa ten times a week…
Right now, there’s no single “winner” in the MTD software race.
HMRC has a list of compatible options, accountants are still testing them, and we’re seeing mixed results. Some work beautifully; others… well, let’s just say they’re not ready for their Royal Albert Hall debut.
My advice? Hold off committing to a platform until the accounting profession and HMRC finish their sound check.
In the meantime, keep good records, stay informed, and don’t panic — the curtain hasn’t even gone up on MTD yet.
And remember: if you didn’t hear it from me (or your trusted accountant), it’s just noise.
Louise
The Singing Accountant
