In April 2026, data suggested that around two-thirds of Making Tax Digital (MTD) for Income Tax registrations were being completed by accountants and tax agents, rather than by sole traders or individual landlords themselves.
HMRC has now confirmed that almost 600,000 taxpayers that fall into the threshold of earning an income over £50,000 have not registered and are now non-compliant. Only around 80,000 of the 250,000 sign-ups were made directly by taxpayers, showing most registrations were completed by tax professionals.
Our Business Services and Tax teams explain the steps you need to take if you have not registered for MTD yet and how we can help you stay compliant during this time.
Key takeaways
- 600,000 taxpayers missed the April deadline to register for MTD and are currently non-compliant.
- Most registrations are agent-led: many mandated taxpayers are seeking specialist support to stay compliant with their MTD obligations.
- Deadlines are approaching: the first quarterly update for many taxpayers is due by 7th August 2026.
- Eligibility is based on turnover, not profit: the £50,000 threshold uses gross income from self-employment and/or property.
- Preparation reduces risk: , such as Xero, setting up digital records and agreeing responsibilities early helps avoid rushed submissions.
The benefits of seeking specialist support when registering for MTD
Despite MTD being discussed publicly for several years, awareness and understanding can still be limited among smaller businesses, which can be highlighted in the number of missing taxpayer registrations.
Another common issue is confusion over the threshold: MTD for Income Tax is based on qualifying income (broadly, gross turnover from self-employment plus gross property income), not profit. Some taxpayers also feel less urgency because the annual tax return process continues in parallel while quarterly updates are introduced.
With the qualifying-income threshold due to fall to £30,000 from April 2027 and to £20,000 from April 2028, the volume of people needing MTD support will increase further.
For those registering for MTD, seeking specialist support can make the process far less complex to manage. MTD introduces new rules, digital record-keeping and the need for compatible software. A tax expert understands the expected requirements and HMRC guidance, which overall enables a quicker and smoother transition.
With expert support, taxpayers also benefit from reduced risk of errors and potential penalties, as specialists can ensure complete compliance and all deadlines are met.
MTD will change how tax is managed continuously, and with expert assistance, taxpayers are guaranteed regular filing support, updates and troubleshooting, as well as more time to focus on running their business.
I have not registered for MTD yet – what do I need to do?
Even with strong early uptake, many taxpayers still need to register before the first quarterly update deadline in August 2026.
If you have not registered yet, consider taking the following steps:
- Check if you are in scope: the first phase applies if your combined gross self-employment and property income exceeded £50,000.
- Choose compatible software: you will need MTD-compatible software to keep digital records and submit updates. Find out more about cloud accounting software options here.
- Decide who will do what: agree whether you or your accountant will maintain bookkeeping, submit quarterly updates and complete the year-end process.
- Register in good time: registration can be more complex where there are multiple income sources, jointly owned property or changes of accounting period.
| Key MTD dates | What happens |
| 6th April 2026 | MTD for Income Tax starts for taxpayers in the first wave (digital record-keeping begins). |
| 7th August 2026 | First quarterly update deadline (Quarter 1). |
| 7th November 2026 | Second quarterly update deadline (Quarter 2). |
| 7th February 2027 | Third quarterly update deadline (Quarter 3). |
| 7th May 2027 | Fourth quarterly update deadline (Quarter 4). |
| 31st January 2028 | Deadline to submit your tax return through MTD-compatible software for the 2026/27 tax year (Final Declaration). |
How can PKF Smith Cooper assist you in registering?
With the right support, the switch to digital reporting can be straightforward and disruption-free. Our Business Services and Tax teams can help you set up digital record-keeping, select suitable software, and manage quarterly submissions so you can stay compliant and focused on running your business.
Making the transition to MTD can feel daunting, particularly if you are unsure about what the changes mean for your business. By moving your records online to cloud accounting, you gain instant access to valuable insights and a more streamlined approach to financial management, including reduced risk of manual errors, more straightforward quarterly reporting and a real-time view of your financial position.
With this in place, our specialists can provide accurate, timely MTD support, giving you confidence that your financial data is always current and compliant.
Get in touch with our team today to discuss your obligations surrounding MTD for Income Tax or find out more about our services on our Making Tax Digital page.
