LITRG reacts to Making Tax Digital quarterly reporting figures
The Chartered Institute of Taxation’s Low Incomes Tax Reform Group (LITRG) has reacted to HMRC’s news that 436,000 people have filed their first quarterly update for Making Tax Digital for Income Tax.
Victoria Todd, Head of the Chartered Institute of Taxation’s Low Incomes Tax Reform Group (LITRG) said:
“These are encouraging numbers, but they mean that around half of the taxpayers who should have filed their first quarterly return have yet to do so.
“It also means that around a third of the taxpayers who should have been in Making Tax Digital from April 2026 have still to even sign-up.
“Automatically signing up taxpayers from September is an opportunity for HMRC to give these taxpayers some extra support. But HMRC also need to understand what the barriers have been that have prevented them from signing up before now.
“Doing so, would enable HMRC to better understand what tools and support taxpayers need to comply with Making Tax Digital going forward.
“Hopefully, this will make the sign-up process more straightforward for the extra one million taxpayers (including 400,000 unrepresented taxpayers) who will be legally required to sign up by next April, when the threshold for taking part falls from £50,000 to £30,000.
“This will be especially important for those taxpayers who need to sign up but cannot afford professional tax advice.”