MTD registration crisis deepens with only 5% signed up just weeks before mandatory digital tax system launches.
More than 800,000 landlords and self-employed workers face a compliance nightmare. With just 27 days until 6 April 2026, thedate from which the first phase of MTD comes into effect, only 50,000 of the 864,000 taxpayers within scope have registered for Making Tax Digital (MTD).
That's a sign-up rate of just 5.8%. This means HMRC now needs 27,000 sign-ups daily to meet the deadline.
What Changes?
From 6 April 2026, landlords and sole traders earning over £50,000 must abandon annual tax returns. Instead, they'll file four quarterly reports plus year-end final declarations. That's five submissions yearly instead of one.
All submissions require HMRC-compliant software. Manual filing is not permitted.
HMRC claims quarterly reporting will catch errors faster and help tackle the £47 billion annual tax gap.
The Real Problem
Most people don't grasp what five annual returns means for their business operations. Record-keeping intensifies. Processes must be rebuilt.
Around three quarters of affected taxpayers use accountants who understand the system. But that leaves roughly 200,000 individuals navigating alone.
Software implementation requires time and training. Hidden costs stack up quickly.
What's Next
The first April deadline may only affect relatively high earners. But from April 2027, anyone earning over £30,000 must join MTD. By 2028, the threshold drops to £20,000.
Nearly three million taxpayers will eventually be caught in the system.
Action Needed Now
For April deadline taxpayers, action cannot wait. Confirm your threshold, select HMRC-compliant software, and if unsure, contact an accountant immediately. Queues are already long.
The April 6 deadline is not flexible. For 814,000 still unregistered, the clock is ticking.
Making Tax Digital will become reality regardless of taxpayer readiness. Whether the transition proceeds smoothly or descends into confusion remains unclear.
Get registered, get compliant, get ahead of the scramble.
Prepare for Making Tax Digital Before the Deadline
More than 800,000 landlords and sole traders still need to prepare for MTD. See how RentalBux helps you keep digital records, organise income, and submit quarterly updates with HMRC-compliant software.
