Almost three quarters (74%) of VAT-registered businesses in the UK signed up for Making Tax Digital (MTD) before the second stagger deadline last month.
Figures from HMRC showed that over 230,000 mandated businesses successfully signed up for MTD before the 7 September 2019 deadline.
Almost all (94%) businesses complied with the legislation to submit VAT returns before both the first and second stagger deadlines.
Around 80,000 VAT-registered firms missed the stagger-two deadline, and the Revenue said it will write to those to remind them of their obligations.
Those businesses are unlikely to be penalised for non-compliance, with HMRC adopting a light-touch approach to penalties until 1 April 2020.
HMRC's reminder letters continue to increase the number of stagger-one businesses signing up to MTD for VAT.
Since missing their stagger-one deadline on 7 August 2019, a further 5% of VAT-registered firms have joined the scheme.
More than 80% of this mandated population is now signed up to MTD for VAT and actively using the service.
The Revenue estimates that around 60% of stagger-three businesses have signed up to MTD for VAT before the next quarterly deadline on 7 October 2019.
Talk to us about MTD for VAT.