(Image: Supplied)
NEARLY half of people eligible for digital tax reporting have missed the first quarterly deadline for Making Tax Digital (MTD) for Income Tax.
According to Azets’ analysis of HMRC figures, an estimated 428,000 people failed to meet the MTD for Income Tax submission deadline on August 7.
Azets, an accountancy firm with an office on Grammar School Street in Bradford, reported the findings based on HMRC data showing that only 436,000 submissions were made on time—just 50.5 per cent of those required to file.
Fraser Campbell, UK head of accountancy and business advisory services at Azets, said: "The number of people who missed the first MTD for Income Tax deadline is greater than the combined populations of Westminster and York.
"This is partly due to the fact that learning curve for taxpayers and their accountants has been very steep in the lead up to the first quarter submission."
Mr Campbell said the new system represents a "major change" for small businesses, especially during tough economic conditions.
He stressed the importance of timely submissions to avoid a backlog of filings.
MTD for Income Tax was introduced in April 2026 as the most significant change to the personal tax system in more than 30 years, aiming to bring tax reporting closer to real-time.