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A new survey has revealed just how concerned people are about the government’s Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) plans.

The Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) survey had over 500 responses and found that the majority (70%) of people thought that April 2026 was still an unrealistic start date.

As many as 95% were not confident about HMRC’s ability to oversee the introduction of MTD for ITSA and 87% don’t believe it won’t achieve the stated goal of closing the tax gap.

Over half of respondents said the proposals had ‘significantly adversely affected their trust in the tax system as a whole’.

Alison Kerrey, chair of the joint CIOT/ATT Digitalisation & Agent Services Committee, said, “The responses from this survey make for worrying, although not surprising, reading. Despite the start date being postponed for two years to April 2026 and the introduction being phased based on income levels, tax agents are still very concerned about the impact which the MTD ITSA proposals will have on them and their clients.

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“HMRC’s insistence that MTD will make lives easier, as well as closing the tax gap, continues to be met with scepticism. There is a real lack of confidence that a convenient, user-friendly and effective system will be ready to go by April 2026.

“Worse still, this survey shows that the tax profession is simply not seeing the value of MTD. In particular, members have seen no improvement in accuracy of VAT returns, or increased productivity, since the introduction of MTD for VAT, but report increases in compliance costs.

“The profession is keen to embrace digitalisation where this delivers benefits for their clients and their firms, as evidenced by the significant levels of online filing of Self-Assessment returns. However, HMRC must do more to must retain the faith and confidence of the large numbers of UK taxpayers affected by this change, and their agents.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £125 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
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  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
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