Tax advisers call for Making Tax Digital rethink

Tax advisers are urging the Government to review its plans to extend Making Tax Digital (MTD) rules to landlords and self-employed individuals.

In a letter to the new financial secretary to the Treasury, Nigel Huddleston, the Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) said the current approach needs a ‘rethink'.

While the professional bodies agreed that a digital tax system continues to bring benefits to taxpayers, agents and HMRC, numerous delays and growing costs have highlighted the ‘enormity and complexity' of MTD for income tax self-assessment (MTD for ITSA).

Earlier this year, a CIOT/ATT survey found that 70% of tax professionals thought that plans to roll out MTD for ITSA in April 2026 were ‘unrealistic'. A further 95% of respondents expressed a lack of confidence in HMRC's ability to implement the scheme successfully.

In light of these concerns, accountants are calling for a detailed consultation on MTD's future direction and delivery, including an in-depth assessment of its potential impacts and benefits:

"We are supportive of the Government's objectives to support growth and make tax fairer. However, there are clear concerns amongst the agent and taxpayer community that MTD is in danger of conflicting with those aims, as well as failing to deliver the objectives of the policy itself.

"We would urge you to openly consult on how MTD should be progressed and to gather and consider the opinions of those affected."

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