Thousands of taxpayers have yet to register for Making Tax Digital (MTD) for Income Tax, despite the deadline being less than three weeks away.
With 864,000 sole traders, landlords and self-employed individuals expected to fall into the first phase, only around 81,000 have signed up so far.
That leaves a staggering 90 per cent still unregistered.
Time is nearly up and delaying registration is not an option. You must act now if you want to avoid unnecessary pressure and compliance issues in the months ahead.
MTD for Income Tax will change how many sole traders, landlords and self-employed individuals report their earnings to HMRC.
From 6 April 2026, individuals with a qualifying income above £50,000 must keep digital records and submit quarterly updates of their income and expenses as well as a final annual declaration using compatible software.
Whether it is due to concern or a lack of awareness, something seems to be holding individuals back from registering.
HMRC is trying to offer additional support during the move to digital reporting and has announced a soft-landing period for the 2026/27 tax year.
This means penalties for late quarterly submissions will generally not apply for the first year.
However, this should not be mistaken for a delay in compliance.
The full penalty regime will begin from April 2027 and those who leave preparation too late may find themselves struggling to keep up once enforcement increases.
If you choose to ignore your obligations, you could face:
It’s completely understandable that the move to digital reporting is raising some concerns.
Many people are worried about the cost of new software or professional support to help manage these new requirements.
Others are concerned about their level of digital confidence, particularly if they are not used to working with online systems.
The move from annual reporting to quarterly updates can also feel like an added administrative burden, especially for those already managing a busy workload.
With any new system, there is the added concern of making mistakes while getting used to a different way of working.
These concerns altogether might be a reason for you to hold back from registering. However, delaying preparation and seeking support will only make the change more difficult.
Taxpayers’ concerns or lack thereof over compliance might be clouding the real benefits that MTD for Income Tax can provide.
The move to digital reporting will bring meaningful improvements to how you manage your finances.
Keeping digital records will reduce the risk of lost paperwork and make it far easier to access your financial information and view your tax position throughout the year.
Compatible software can also take away the risk of the errors that manual processing brings and improve accuracy by automating calculations.
Alongside software, digital submissions can streamline the process and save you time on preparing tax returns.
Perhaps most importantly, having up-to-date financial data allows for better planning and cash flow management, so you can truly feel more in control of your finances.
This is your last chance to get ahead of the deadline and prepare for your new MTD for Income Tax obligations.
With the right professional support, you can iron out those concerns and stay compliant and meet the correct deadlines.
We can help you register, choose the right MTD compatible software, maintain digital records and submit quarterly updates on your behalf.
We want to take some of the pressure off moving to digital reporting and give you peace of mind that your tax returns are accurate.
For further advice or support on your Making Tax Digital for Income Tax requirements, get in touch.
