There’s a relatively low level of awareness about Making Tax Digital according to a new survey.
Its second quarterly reporting deadline fell over the weekend but a survey shows half of UK adults (50%) don’t know what Making Tax Digital (MTD) for Income Tax involves.
Almost a third (31%) have never heard of MTD, and a further 19% have heard of it but don’t know what it involves.
MTD is the biggest change to how income tax is reported since Self Assessment. Instead of reporting once a year, sole traders and landlords keep digital records and send HMRC a summary of their income and expenses every three months.
Those with qualifying income over £50,000 have been required to use MTD since April 2026. The threshold falls to £30,000 from April 2027 and is planned to fall to £20,000 from April 2028, bringing many more people into scope.
“With the next group of landlords and sole traders joining in April 2027, now is the time to check whether you are in scope, choose the right tool, and start keeping records as you go.
“Accountants have a central role to play in helping their clients make that change with confidence,” says Bas Kniphorst, EVP and Managing Director of Wolters Kluwer Tax & Accounting Europe.
Only 9% of UK adults say they already use MTD, while 13% know what it is and are ready to use it when it applies to them, and 16% are confident it does not apply to them.
More than one in ten (12%) believe MTD applies to them but have not yet taken action.
Confidence is also low. More than half (51%) are not confident they would know if a change to tax rules, such as MTD, applied to them, including 22% who are not at all confident.
Just 11% say they are very confident.
Two in five UK adults (42%) doubt they would meet a tax deadline without being reminded. When faced with a tax deadline, 13% have left it until the final day or the night before, and 11% have avoided dealing with it because they found it stressful.
Almost one in ten (9%) have missed a tax deadline completely, and 8% have paid a fine or penalty for filing late.
People also turn to others for support. Around one in seven (15%) have asked a family member, friend or colleague for help with a tax deadline, while 11% have paid an accountant to sort it out for them.
Keeping digital records is at the heart of MTD, yet 38% of UK adults are not confident they could find the records they need if HMRC asked them about their income.
Only one in five (20%) say they are very confident they could.
The rollout of MTD for Income Tax is continuing. Sole traders and landlords joining from April 2027 will have a first-year soft landing, with no penalty points for late quarterly updates during 2027/28.
Those who joined in April 2026 have no penalty points for late quarterly updates during 2026/27, although this does not cover late year-end tax returns.
