250,000 Join MTD Program; Majority Are Accountants

Mo. Basuony

Published: April 19, 2026 1:36 AM ET

250,000 Join MTD Program; Majority Are Accountants

With four months to go before the first quarterly filing deadline, sign-up levels for Making Tax Digital remain uneven. HMRC expects 864,000 individual taxpayers to fall into the initial MTD wave, based on qualifying income above £50,000 for 2024-25.

Current registration figures

Only about 80,000 individual taxpayers have registered so far. HMRC’s broader tally shows 250,000 registrations in total. The update notes that agents make up the majority of those registrations.

Filmogaz.com reported the headline tally as 250,000 Join MTD Program; Majority Are Accountants. HMRC’s director for Making Tax Digital, Craig Ogilvie, said about 69% of sign-ups are agents.

Gap to reach full coverage

That leaves roughly 600,000 taxpayers still to register. The first quarterly filing deadline is Friday 7 August. Meeting that deadline will require a rapid increase in direct taxpayer registrations.

Changes to exit rules

HMRC introduced a late change allowing some people to leave the MTD regime. Taxpayers whose income falls below £50,000 can phone HMRC to report the change. Previously there was no formal exit route.

Who must comply and when

From 6 April, sole traders, self-employed people and landlords with qualifying income over £50,000 for 2024-25 must follow MTD for Income Tax. They must keep digital records and make quarterly submissions.

The threshold is scheduled to fall to £30,000 in April 2027. Quarterly reporting does not replace the annual self assessment return. The 31 January annual deadline remains in force.

Awareness and readiness

Industry research highlights low public awareness of MTD. FreeAgent found 39% of small business owners had never heard of MTD. Another 19% said they understood nothing about MTD for Income Tax.

One in five sole traders remain unclear about the rules. Practitioners warn that software readiness is not the only barrier. Client engagement and regular use are equally crucial, they say.

Industry and pilot progress

Pilot participants are now submitting end-of-year declarations. Thomson Reuters confirmed a pilot customer filed a 2025-26 final declaration using Digita MTD software. Software firms such as FreeAgent, Untied and Thomson Reuters lead on early EOY submissions.

Donna Taylor of Glasscubes warned that clients could still need help each quarter. Leigh Thomas of Intuit framed MTD as both compliance and a business opportunity. Treasury minister Dan Tomlinson described MTD as the most significant tax modernisation for a generation.

Revenue impact

HMRC and the Treasury say MTD will reduce errors and close parts of the tax gap. Officials estimate around £6 billion is lost annually due to incorrect self-assessment tax payments. Keeping digital records should lower that risk.

What taxpayers should do now

There is still time to register and prepare. Taxpayers must ensure records are digital and can be submitted via commercial MTD software or through accountants and agents.

Options include accounting software, bookkeeping firms, tax agents, or bridging software. Those eligible but unsure should seek guidance early to avoid last-minute problems.

Further resources from Filmogaz.com

Filmogaz.com offers a 20-minute free CPD module on MTD. The course is presented by Diane Wright CTA, Filmogaz.com’s MTD expert. Additional articles cover exit rules and filing deadlines.