Mistake #1: Assuming MTD Doesn’t Apply to You
One of the biggest errors Claire at Nuvo sees is people thinking MTD won’t apply to them.
“If your total income from self-employment and/or property is over £50,000 in 2024–25, you’re in. Period.”
How to Avoid It:
- Total your gross income, not profit
- Plan for April 2026 if you’re over £50K
- If you’re between £30K–£50K, get ready for 2027
Mistake #2: Thinking Spreadsheets Will Be Enough
Spreadsheets seem like the easiest option.. That will “get you by” but it wont be enough for MTD.
Here’s the problem:
- No bank-feed integration
- No real-time updates
- No automation
- Error-prone submissions
The Fix: Use bridging software short-term or move to full MTD software. We recommend Xero or FreeAgent for a long-term solution.
Mistake #3: Waiting Until April 2026 to Start
2026 keeps getting closer. Eventually you will run out of time. It can take a while to get the software working, if you leave this setup till last minute you could leave yourself making errors.
How to Fix It:
- Start practicing with your 2024–25 data
- Set calendar reminders for quarterly submissions
- Use software to simulate submissions now
Mistake #4: Not Keeping Personal and Business Finances Separate
This mistake is especially common among landlords and sole traders.
Why it’s risky:
- Confusing data
- Complicated tax audits
- Higher chance of errors
The Fix:
- Open a separate business bank account now
- Connect it to your MTD software
- Reconcile monthly
Mistake #5: Relying Solely on Your Accountant
Accountants are essential, but MTD shifts record-keeping and submissions to you.
What this means:
- You must maintain digital records year-round
- Submissions happen quarterly, not annually
- Your accountant can’t fix missing data last-minute
The Fix:
- Work collaboratively with your accountant
- Learn how your software works
- Set up workflows that reduce your reliance
Final Word: Don’t React. Prepare Proactively.
The truth is, MTD doesn’t have to be stressful. By avoiding these 5 common mistakes and taking control now, you’ll not only stay compliant, you’ll operate more efficiently and confidently than ever.
Still unsure where to begin? The Nuvo team can walk you through every step, from software setup to deadline reminders.
Are you prone to MTD mistakes?
We’ve built a free ScoreApp assessment to help you find out whether you’re ready for Making Tax Digital 2026. It takes 3 minutes, and gives you a personalised report on your MTD readiness. 👉 [Take the assessment here]
Or book a discovery call to chat through how MTD will impact your business.
