Your clients almost certainly have not signed up for MTD for Income Tax. The numbers now confirm it.
Speaking at the Finance, Accounting & Bookkeeping Show this week, HMRC MTD expert Jim Rogers revealed that just 81,000 sole traders, landlords and self-employed individuals have completed MTD for Income Tax registration, with 864,000 taxpayers required to enter the regime on April 6 2026, which leaves roughly 783,000, nearly nine in ten, yet to act. Rogers also confirmed that HMRC has received only 2,200 exemption requests to date.
A Quick Refresh on Scope
MTD for Income Tax applies to sole traders and landlords whose combined gross income from self-employment and property exceeded £50,000 in the 2024/25 tax year. Total income before deductions is what counts. Employment income, dividends and pension income sit outside the threshold calculation. Where a client has both trading and property income, the two figures combine.
The rollout is phased:
- April 2026: combined gross income over £50,000, based on 2024/25 returns
- April 2027: threshold drops to £30,000, based on 2025/26 returns
- April 2028: threshold drops to £20,000, based on 2026/27 returns
The Registration Gap
Of the 864,000 taxpayers mandated to register by April 2026, just 81,000 have done so. That leaves 783,000 yet to complete MTD for Income Tax registration, with three weeks until the start date.
The voluntary pilot that ran ahead of the April 2026 launch attracted 4,000 participants. HMRC has also received 2,200 exemption requests to date. The remaining population is largely unregistered, unonboarded and, in many cases, unaware of what is required of them.
The Timeline, Honestly
April 6 is HMRC’s preferred registration date and the start of the first reporting period. But it is not a hard deadline for filing. The first quarterly submission covers April 6 to July 5 2026, with a filing deadline of August 7 2026. HMRC has confirmed no penalty points will apply for late quarterly updates during the first year, though late payment penalties and end-of-year obligations remain in force.
The opportunity to onboard clients has not passed. There is still time to bring clients through registration, get them set up on software and have them ready before the first submission falls due. The window is open.
What Accountants Must Do Right Now
The timeline gives room. Client anxiety does not.
Clients are already asking questions. They are uncertain, some are panicked, and most believe April 6 is a hard deadline they have already nearly missed. That anxiety is not a problem to manage later. It is a conversation happening right now, with whoever picks it up first.
The accountants who move now are not just solving a compliance issue. They are showing up at exactly the moment a client needs them most. That is how relationships are built and how new ones begin.
The Search Ends Here
With April 6 on the horizon, there is no time to work through a list of twenty MTD software options, shortlist the best ones, and then trial each of them. Honestly, that window has closed.
So here are two tools worth going straight to:
- FigsFlow: built for onboarding clients faster, at volume
- RentalBux: HMRC recognised MTD filing software
With time running short, go straight to a demo rather than a free trial. Thirty minutes in, and you will know whether it is worth your time.
