Just weeks before more than three quarters of a million taxpayers need to begin keeping records via the digital regime, only 30,000 have registered to do so, PublicTechnology can reveal
Only one in 26 of the 780,000 taxpayers required to adopt the UK’s new digital income tax regime from April are currently signed up to do so.
HM Revenue and Customs is undertaking a major expansion of the Making Tax Digital (MTD) system which, in less than two months’ time, will become mandatory for all annual income tax self-assessment (ITSA) returns and record-keeping for those earning at least £50,000 a year. From April 2027, this threshold will be lowered to £30,000, then again to £20,000 in 2028
HMRC expects that this will result in respective tranches of 780,000, 970,000, and 975,000 additional people being brought in scope of MTD – which requires users to file tax submissions digitally, using a compatible software platform accredited by the department.
In a letter sent to parliament’s Public Accounts Committee two weeks ago, HMRC chief executive John-Paul Marks told MPs that “there are currently approximately 18,000 sign-ups for April 2026 – consisting of 12,000 early sign-ups and around 6,000 from the public testing phase” that took place last year.
PublicTechnology understands that, at time of reporting, the total number of sign-ups has risen to more than 30,000.
But this still leaves 750,000 yet to sign up – equating to more than 96% of the total number that, from 6 April, need to begin using the digital service to keep quarterly income and expense records, as well as file annual returns.
It is understood that, using data from self-assessment filings for the 2024/25 year – the deadline for which passed on 31 January – everyone likely to be in scope of MTD in the coming weeks will be sent a letter before the end of next month.
These missives will instruct taxpayers of their new digital obligations, and will provide a QR code pointing them to online government guidance. Those whose affairs are handled by a third-party specialist will be advised to contact their tax agent to make sure they are ready for MTD.
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Alongside this direct communication, HMRC is also undertaking campaigns in conjunction with trade bodies in certain sectors where the department believes it needs to raise awareness, PublicTechnology understands. This latest uptake drive follows a letters sent out last spring advising taxpayers of steps they needed to take, as well as an initiative in which the HMRC reached out to small and mid-sized advisers.
In response enquiries from PublicTechnology, HMRC flagged up its most recently published readiness research, which found that 99.6% of professional agents were aware of the MTD expansion. Those with any lingering questions were advised to visit the department’s specially created website.
A spokesperson added: “Working closely with businesses, agents and software providers, and we’re on track to launch Making Tax Digital for Income Tax in April. Thousands more customers are signing up every day and we urge customers to check out our guidance on GOV.UK to find out what they need to do.”
In his letter to PAC last month, chief executive Marks also provided an update on the number of software platforms that are ready for use by those joining the digital tax regime.
“We have… taken steps to reduce additional costs to customers during the transition, providing customers with access to affordable, secure, and compliant software,” he wrote. “Collaboration with the software industry means that there are free and low‑cost products available, alongside a wider range of paid options, enabling customers to choose a solution that best meets their needs. Many of these products are specifically designed to support unrepresented customers. As of 16 January 2026, there are 45 HMRC-recognised software providers offering 52 MTD‑compatible products; 19 of those products provide free or freemium access.”
