"Rushed” MTD timetable could lead to problems for 900,000 taxpayers
The “rushed” timetable for Making Tax Digital (MTD) gives no time for feedback and refinement of the new digital tax return regime, says the Association of Taxation Technicians (ATT)
Today’s Spring Statement1 included the announcement that MTD will be extended to 900,0002 individuals with property or self-employment income of £20,000 or more from 6 April 2028. They will follow the previously confirmed start dates of April 2026 for those with more than £50,000 of income from these sources and April 2027 for those with £30,000 and over.
Taxpayers who are moved to the regime will need to keep records digitally, file quarterly updates of income and expenses during the tax year, and then file a final digital tax return. For the April 2026 cohort, that tax return will be due by 31 January 2028, meaning HMRC will have just two months to review the experience of this first group of MTD taxpayers, and make any necessary changes before the additional 900,000 taxpayers are brought into the regime from April.
The ATT has warned this is not enough time to conduct an effective review of MTD and means any potential problems are likely to be rolled over on to subsequent cohorts of taxpayers.
Emma Rawson, Director of Public Policy for the Association of Taxation Technicians, said:
“The announcement in today’s Spring Statement came as a surprise – almost 1 million more taxpayers are due to be brought into the scope of MTD in April 2028, just two months after the first wave of taxpayers have completed their first compliance cycle under the new regime.
“We’re concerned this rushed timetable won’t allow for sufficient time to review outcomes for the first group of MTD taxpayers, and to make any changes needed before the newest cohort comes in. This risks exacerbating any initial problems with the regime.
“The April 2028 expansion of MTD will also bring in lower income taxpayers, who may be less able to afford professional advice and specialist software to help them transition to and comply with MTD.
“This makes having an efficient, simple MTD compliance process and clear guidance all the more important.”
Notes for editors
2. Figure from HMRC technical note.