Updated on 18 June 2026

LITRG: Over 100,000 unrepresented taxpayers still to register for Making Tax Digital

Press release

An analysis of HMRC figures by the Low Incomes Tax Reform Group (LITRG) suggests that just over half of the 216,000 unrepresented taxpayers who have to take part in Making Tax Digital (MTD) from April 2026 have still not registered more than two months after its launch. 

Golden writing spelling out '100K' against a blue background
LITRG creation via Canva.com

LITRG’s estimates are based on official HMRC statistics on the number of unrepresented taxpayers it estimates will be in scope for MTD from April 2026, alongside recent public comments from senior HMRC officials on registration and sign-up rates1.

From April 2026, taxpayers with gross income of more than £50,000 from self-employment and/or rental income in the 2024/25 tax year are legally required to use MTD unless they are exempt2. The threshold will drop to £30,000 from April 2027 (based on the 2025/26 tax return) and to £20,000 from April 2028 (based on the 2026/27 tax return). 

LITRG believes that of the 216,000 unrepresented taxpayers HMRC expect to be in scope for this year, around 111,000 have still to register3. This figure represents around 52% of the unrepresented taxpayer population identified by HMRC last year and is likely to include some with low or modest incomes who will be reliant on HMRC for help and guidance.

Unless they are exempt, taxpayers who meet the qualifying income threshold for MTD will be required to follow the new rules. This includes using third party software to keep digital records, submitting quarterly updates of their income and expenses, and filing an annual tax return.

With less than two months to go until the first MTD quarterly update deadline, where taxpayers will be required to report their business income and expenses for the first time under the new rules4, LITRG is calling on taxpayers who have not yet checked whether they need to use MTD from 2026/27 to:

  • Check whether they meet the criteria that makes them legally required to sign-up for MTD now – this means having had more than £50,000 of gross income from self-employment and/or rental income in the 2024/25 tax year. 
  • Find out whether they can obtain an exemption from MTD – HMRC has set out several permanent and temporary exemptions from MTD5.
  • Choose the right commercial software to comply with HMRC’s reporting requirements – HMRC are not providing software for MTD, it will be necessary to use third-party commercial software for keeping digital records, making quarterly returns and for filing a tax return6. 

Earlier this year, LITRG launched a dedicated Making Tax Digital Hub on its website providing free, clear and practical guidance for taxpayers to help them understand the new rules. Since its launch at the end of January, these pages have been viewed over 60,000 times.

Sharron West, LITRG Technical Officer, said:       

“While most of the taxpayers who need to use Making Tax Digital from April 2026 have the services of a professional tax adviser or accountant to help them, there are a significant number who don’t, and many of them have still not signed up.

“We are concerned that there are a substantial number of people who should register but don’t realise they need to. 

“However, the good news is that there’s still time for these taxpayers to get ready ahead of the first reporting update due on 7 August 2026.”

Sharron West continued:

“The first thing these taxpayers should do is check their self assessment tax return for 2024/25 to see if they meet the criteria for the April 2026 start date. 

“HMRC have written to taxpayers who they think should follow the Making Tax Digital rules from April 2026, but it’s possible they might not have received the letter. They should still check if they are unsure. 

“Then, they should check to see whether they are entitled to an exemption. Some exemptions are automatic but some need to be applied for, for example, if you are digitally excluded. These types of exemptions are dealt with by HMRC on a case-by-case basis and we don’t yet know how strict or lenient the rules for these will be.

“If after this they still need to register, they need to choose suitable software and begin collating the information on their income and expenses that they will report to HMRC later this year.

“There are no penalties currently for missing the August 2026 deadline, but it is important to get to grips with the MTD requirements sooner rather than later.”

Notes for editors

  1. Making Tax Digital for Income Tax business population statistics: commentary (HMRC, 13 August 2025). 
  2. The threshold for taking part in MTD will reduce to £30,000 in April 2027, and to £20,000 from April 2028.
  3. In a recent LinkedIn post, Craig Ogilvie, HMRC’s Director for Making Tax Digital, posted that there have been over 336,000 sign-ups for MTD and that 69% have been ‘agent-led’. If the remaining ‘non-agent’ registrations that are deducted from the 216,000 unrepresented taxpayers estimated by HMRC in August 2025, that would mean around 111,840 of these taxpayers have still to register.  
  4. Record keeping and quarterly updates for Making Tax Digital (LITRG, 6 April 2026) 
  5. Making Tax Digital exemptions (LITRG, 6 April 2026).
  6. Choosing Making Tax Digital software (LITRG, 6 April 2026)
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