Making Tax Digital timetable criticised

One of the measures announced in the recent Spring Statement was the Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) timetable.

Chancellor of the Exchequer, Rachel Reeves, said that it will be expanded to include a wider range of smaller sized businesses, with the year it becomes mandatory determined by earnings.

For example:

• April 2026 – self-employed individuals and landlords earning more than £50,000
• April 2027 – those earning more than £30,000
• April 2028 – those earning more than £20,000

This will result in 900,000 more individuals being included in the MTD for ITSA.

The Association of Taxation Technicians (ATT), however, believes this is a ‘rushed’ timetable that doesn’t give time for feedback and refinement of the new digital tax return regime.

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 the 31^st of 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.

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.”

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