HMRC urged to increase publicity around MTD

An HMRC instigated survey has suggested a lack of readiness and enthusiasm among many businesspeople regarding Making Tax Digital (MTD) for Income Tax.

The Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) believe that this attitude is fuelled largely by a lack of awareness, and so are calling on HMRC to increase their publicity around MTD.

MTD will require people with annual business, property, or combined business and property income above £10,000 to use specialist software to keep their records and file their returns, as well as report their income and expenses to HMRC once a quarter.

Andrew Jackson, Vice-Chair of the joint CIOT and ATT Digitalisation and Agent Services Committee, said, “We welcome HMRC commissioning this survey because it is about a major change in how millions of people will report their income tax affairs to the tax authority. The survey results suggest the lack of understanding among affected people of what the changes mean in practice that we have long suspected, heard and warned HMRC about.”

Jackson added, “The survey results show an alarming lack of readiness and enthusiasm for MTD, fuelled largely by a lack of awareness that MTD for Income Tax begins in less than two years’ time. This is why we have encouraged HMRC to publish more detailed guidance about the Making Tax Digital process, as there are seemingly more questions than answers at the moment. HMRC must spell out what they are going to do to improve awareness and bring out all the necessary guidance they can urgently.

“The survey adds to our concerns about the lack of available and affordable Making Tax Digital software and the low numbers of businesspeople and landlords signing up to take part in the Making Tax Digital for Income Tax pilot.

“According to the survey, many taxpayers also share our doubts around HMRC’s claims about the usefulness and the potential time savings and low estimates of the costs being imposed on businesses and individuals of using Making Tax Digital compliant software.”

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