More than 110,000 taxpayers who will be required to use Making Tax Digital (MTD) for Income Tax from April 2026 have yet to register, according to the Low Incomes Tax Reform Group (LITRG).
The warning relates to taxpayers who do not have an accountant or professional tax adviser and are therefore responsible for managing the registration process themselves. LITRG estimates that around 111,000 of the 216,000 unrepresented taxpayers expected to fall within the new rules have still not signed up.
From April 2026, MTD for Income Tax becomes mandatory for individuals with gross income exceeding £50,000 from self-employment and/or property rental in the 2024/25 tax year, unless they qualify for an exemption.
The programme will continue to expand over the following two years. The income threshold will reduce to £30,000 from April 2027 and to £20,000 from April 2028, bringing hundreds of thousands more taxpayers into the digital reporting regime.
Making Tax Digital represents one of the biggest changes to the self assessment system in recent years. Instead of submitting a single annual tax return, those within scope will need to keep digital records using compatible software and submit quarterly updates to HMRC, with the first reporting deadline falling on 7 August 2026.
LITRG is concerned that many taxpayers remain unaware they will be affected. While most people who fall within the new rules are expected to receive support from an accountant or tax adviser, a significant number will need to prepare on their own.
Sharron West, Technical Officer at LITRG, said the organisation is concerned that many taxpayers who should be registering simply do not realise the new requirements apply to them. However, she stressed that there is still time to prepare before the first quarterly submission is due.
For those likely to fall within the scope of MTD, now is the time to check whether the new rules apply, choose suitable software if required and begin familiarising themselves with the new reporting process. Taking action early should help avoid a last-minute rush and reduce the risk of compliance issues once the new regime begins.
