Nearly 600,000 Yorkshire Taxpayers Yet to Register for Making Tax Digital Compliance

Many individuals and landlords in Yorkshire are facing a ticking clock when it comes to their taxes. Nearly 600,000 people have yet to register for Making Tax Digital (MTD) for Income Tax, according to a recent Freedom of Information (FOI) request by Azets, a prominent accountancy and business advisory group with offices in Leeds, Bradford, and York. This situation has raised concerns about potential fines and stress for those who fail to comply.

Understanding Making Tax Digital

Making Tax Digital is a significant change in the UK’s tax system, marking the first major update in nearly 30 years. Introduced in April 2026, MTD requires certain individuals, including landlords and self-employed workers, to keep digital records and report their income quarterly. This is a shift from the traditional method of filing a single tax return once a year. The aim is to make the tax process more efficient and transparent, allowing taxpayers to have real-time access to their financial information. As of May 20, 2026, data from HM Revenue and Customs (HMRC) revealed that while approximately 864,000 individuals and landlords should have registered for MTD, only about 282,637 had done so. This means that over two-thirds of those required to register have yet to take action.

The Risks of Not Registering

Fraser Campbell, the UK head of accounts and business advisory services at Azets, highlighted the potential risks of failing to register for MTD. He stated:

“Not signing up creates potential problems in the future.”

While HMRC has announced that there will be no penalties for missing quarterly return deadlines this year, Campbell warns that individuals are setting themselves up for stress and possible fines by delaying registration. For those who wait, the consequences could be overwhelming. If they do not register soon, they will need to catch up on all four quarterly filings for this year while also managing next year’s filings. This could lead to a situation where they have to submit up to nine returns in a single 12-month period.

Benefits of Making the Switch

Despite the challenges, there are notable advantages to registering for MTD. Once individuals start using MTD-compliant software, they will gain access to near real-time information about their business performance and projected tax bills. This can help with better financial planning and forecasting. Campbell emphasised that “preparation, planning and taking advice at the right time are key for compliance.” By adopting the new digital system, taxpayers can improve their financial management and engage more effectively with their tax advisers.

What You Need to Do

For those who might be unsure about their obligations under the new MTD regime, Azets has provided some useful tips:

• Check if you fall under the new reporting obligations. If your gross income is above £50,000 per year, you must comply. This threshold will decrease in the coming years to £30,000 in 2027 and £20,000 in 2028.

• Ensure that your software, or your accountant’s software, is HMRC approved and compatible with MTD.

• Start using MTD-compliant software as soon as possible.

• Find out if you are exempt. Some individuals may qualify for exemptions, so it’s worth checking on the HMRC website or consulting an expert.

Seeking Help

With the tax landscape continually evolving, it’s essential for individuals and landlords to stay informed and prepared. Anyone concerned about MTD or unsure whether they are eligible is encouraged to speak with an advisor.