However, Just 3% of self-employed people are currently using the required third-party software to submit their tax returns, demonstrating how significant the shift will be over the next year.
A new survey by accounting conference and expo Accountex London has found that 4 in 5 accounting professionals think MTD for income tax is the ‘biggest challenge’ of the next 12 months.
The survey also showed that 1 in 3 accountants are unprepared for the change, with 1 in 10 saying they were ‘very unprepared’.
Penalties for late filing under MTD will only occur for annual filing during the testing period, but after April 2026, qualifying people will start receiving penalty points for late quarterly filing, incurring a £200 fine after 4 missed deadlines.
The new rules are slightly more flexible than current late penalties, but with the added complexities of adopting new software and having to submit quarterly reports rather than yearly, there is more room for error once the testing period ends.
Advice from HMRC
Craig Ogilvie, Director of Making Tax Digital at HMRC said: “With April 2026 on the horizon, we are issuing letters to customers we believe will be mandated, outlining specific requirements and timelines.
We urge those who meet the mandation criteria to join our testing programme on GOV.UK now to help shape the final service and make your transition smoother.”
Clive Barnett, External Readiness Lead, HMRC: “Joining our MTD for Income Tax testing phase now gives businesses and agents hands-on experience before April 2026. Participants can prepare for this significant change with benefits such as dedicated support and penalty-free quarterly submissions.
“HMRC is making sure our marketing, communications and product launches all align to ensure there’s a package of support around during the testing period and the long-term adoption to help people make the right choices for their business and clients.”
For the full results of the survey, see the original article here: https://www.accountex.co.uk/insight/2025/04/22/survey-reveals-that-making-tax-digital-is-both-the-biggest-challenge-and-opportunity-for-accountants-in-2025/