The Low Incomes Tax Reform Group (LITRG) is urging the estimated one million taxpayers who failed to file their tax return on time to get their tax affairs back on track.

LITRG welcomes today’s announcement that taxpayers who are required to take part in Making Tax Digital (MTD) for Income Tax from next April will not be charged penalty points if they fail to submit any of their compulsory quarterly updates of income and expenses late during the first 12 months.

Some self-employed taxpayers have been affected by an issue where their 2024/25 tax calculations wrongly included class 2 National Insurance. HMRC have now provided an update.

In the first couple of weeks of November HMRC are writing to some taxpayers who are legally required to follow the new Making Tax Digital rules from April 2026 to tell them what they must do to get ready. Do not ignore this letter, read on to find out what you should do.

The Low Incomes Tax Reform Group (LITRG) is encouraging taxpayers who can’t manage their tax affairs online and are due to start using Making Tax Digital (MTD) for Income Tax to check whether they can claim an exemption from the initiative, which launches in six months’ time.

LITRG have responded to HMRC’s consultation on the draft regulations for Making Tax Digital for Income Tax published in July. These regulations will eventually replace the regulations from 2021 and 2024.