Voluntary sign ups for Making Tax Digital low

Total sign-ups for HMRC’s Making Tax Digital (MTD) for Income Tax pilot has decreased from 877 in the pilot’s first year to only 26 in the 2020-21 tax year which causes concern for accountants 

According to data obtained by accountancy firm Saffery Champness through a Freedom of Information (FOI) request, a total of 1,015 taxpayers have voluntarily signed up for the pilot since it was launched in 2018.

Of these voluntary users, 218 or approximately 21% are landlords with property income and from 2021-22 year there were six reported signups.

The low participation rate has led to concerns about the extent of the testing of Making Tax Digital system that 4.3m self-employed and landlords will have to use when they are moved over in April 2024.

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