Making Tax Digital

[etf]

If the ship does hit an iceberg, it is hoped those responsible for introducing MTD4IT will hold there hands up, admit they stuffed it up wasting sooooo much money and jump ship.

By North East Accountant
16th Feb 2026 09:44
Well over 11 years since the idea was first mooted HMRC are about to launch the SS Titanic, I mean SS MTD.

Icebergs a plenty await, and with the ship not even fully built yet, it will only be with herculean efforts of agents (and software companies) that the whole thing stays afloat.

I used to sail, frequently in mega strong winds, and my number one aim was to stay upright, winning the race was just a bonus.

Same here folks............just make sure you stay afloat.......and that's on us........the unrepresented are HMRC's problem.

[etf]

Hang your head in shame MP Murray...HMRC doesn't appear to be ready.

Signing clients up for MTD
A few failed attempts to sign people up to MTD

I have followed the correct procedure as far as I know. Using my agent services account I have transferred the authorised clients in bulk using my agent code. I have failed to sign up anybody. The message says this client is unable to use MTD. The reasons given 1 they haven't submitted a tax return in the last 2 years or 2 their insolvent, neither of which are true. I have sent off the details to HMRC. I wonder if I'm missing something.

By wonkey
19th Feb 2026 15:33
I've had this problem as well. HMRC advised to contact the digital technical support team which I have done. They bounced me back to the SA "helpline" who referred me back to the digital technical support team. I have wasted too much time on this now, so I'm going to give up and see if HMRC write to the client about registering and take it from there.

By ireallyshouldknowthisbut
19th Feb 2026 16:02
Hats off to you for volunteering to do this early, I would document you "had a go" then do somethign productive and sit this one out.

Quite frankly if there are this many holes in the IT they are going to have to push it back even further.

Remember penalties are suspended so it matters little what you do or dont file.

[etf]

Headline in the Telegraph.....how much longer are the Labour Fruit Bats in charge?

HMRC wants freelancers to file their finances four times a year. They’d rather quit

Self-employed weigh up whether Making Tax Digital’s quarterly burden is worth it

[etf]

By Tornado
20th Feb 2026 15:43
I refreshed the page a few times and was able to read it without the pop ups.

It seems to be a fair article and does highlight two particular points of concern -

Workers will need to send a quarterly update even if they do not incur income, and can opt out of the digital programme only after three consecutive years below the threshold, according to HMRC

It seems that any idea of Self-Assessment being run down and everyone using the MTD Tax Return is not the plan. MTD is discriminating against those with Self-Employed income or Rents but worse than that, they will be spending untold £Millions/Billions on running two full blown Tax Administration Systems at the same time.

This is an absurd concept as they already struggle with the Current Self Assessment System and instead of just improving that system, we are going to end up with two third rate systems. Even worse than that, however, PAYE & VAT are also showing signs of breaking down so we might end up with all four systems providing third rate services.

An HMRC spokesman said: “Making Tax Digital will make it easier for sole traders and landlords to get their tax right by providing a more real-time overview of their finances, freeing up their time to focus on growing their business.

This is the lie perpetuated by HMRC. There cannot be any accurate real time overview of tax liabilities as Income Tax is an annual tax that requires accurate income and allowances from ALL sources before you can arrive at a final tax/NIC liability. What I think we will get is in-year tax estimates that can be relied on to be 100% WRONG.

[etf]

Magic mushrooms to save you looking it up.

By Ledgerman
20th Feb 2026 18:02
HMRC spokesman said "Making Tax Digital will make it easier for sole traders and landlords to get their tax right by providing a more real-time overview of their finances, freeing up their time to focus on growing their business."

That made me laugh!

What planet are they on?


Replying to Ledgerman:

By FactChecker
20th Feb 2026 18:57
Not sure of the planet's location, but apparently the only natural source of protein there is obtained from Psilocybe semilanceata

[etf]

By Ledgerman
20th Feb 2026 20:42
Enthusiasm would be overstating it. The question clients keep asking — quite reasonably — is what exactly HMRC believes was wrong with tax returns that were already accurate, complete, and on time. From their perspective, it feels like bureaucracy for its own sake, now with the added bonus of having to rely on paid software provided by offshore tax dodging IT giants, to produce the same outcome as before.

[etf]

Mr Clifton-Brown...your services are required....has anyone heard HMRC admit to the below?

Registration for Making Tax Digital for Income Tax Self Assessment (MTD4IT), due to become mandatory in April 2026, is currently facing significant challenges, with only a small fraction of the expected 800,000+ users signed up as of early 2026.

Here is a breakdown of the current situation:

Low Early Registration: Reports from February 2026 indicate that only about 5,000 users have signed up out of the estimated 864,000+ required to register for the 2026/27, leaving over 850,000 still to go with only a few weeks to go before the initial deadline.

Technical and Practical Concerns: There are widespread concerns regarding the readiness of HMRC's systems, with reports of issues using the agent services account to sign up clients.

Apathy and Awareness: Despite the deadline, there is significant, widespread apathy and lack of awareness among affected taxpayers, many of whom are not aware of the changes.

Concerns over Costs: Small business owners are worried about the extra costs and administrative burdens associated with mandatory software and quarterly reporting.

Expert Scepticism: The tax profession and industry observers have expressed severe doubts about the timeline, with some suggesting a postponement is necessary

[etf]

MTD4IT....even AI is confused.

'Independent Arbitar'...I'm nominating Chris Bryant MP (Clifton-Brown your days are numbered) ...he'll say it as it is.

By rmillaree
25th Feb 2026 09:32
what is perhaps a tad scary is that if you ask copilot the question when mtd applies it seems to default to telling people they are obligated a year earlier than they should be if you enter ye 05/04/2026 income - not a great advert for convincing the masses its easy when you write your guidance in such a manner that it confuses the hell out of AI ! - ok that might not take much - but AI is getting as popular as google search for some so you would think they might have taken the time to enusre the main AI doesnt get it "obviously wrong"

Obviously use of AI is never a defence - but the reality is with hmrc guidance often being unreliebale in itself (one needs to submit 2026 tax return before your first mtd return is sorted - outright lies) - i do fel slightly sorry for tehn avergae joe trying to work out wtf is up

first client i tried to sign up for mtd - it said "no can do" - they are sole trader with 300k per year income ! - they have had payment plan in recent past ? should that alone provent soemone doing their legal signup easily ? - shame there isnt a decent independent arbitrar to take hmrc to task when they stop losing the plot - this mtd mess is really well below minimum standards i would expect- especially as ye 05/04/2027 roadmap really hasnt even been sorted yet !

shame the masses cant get polltax type protests up and running

[etf]

"Warm smell of colitas" is a famous opening line from The Eagles' 1976 hit "Hotel California". It generally refers to the scent of burning marijuana buds.

You would need to be stoned to dream up MTD4IT, trapping taxpayers in with little chance of escape, so the Software Companies (the dealers) maximise profits.


By FactChecker
24th Feb 2026 14:49
Whether or not the legislation supports their contention (I believe it does), HMRC are absolutely consistent and determined that:

* the 'threshold' criteria is based on the figures reported as gross income (from the relevant self-employed and property rentals pages) of the 2024-25 SA return (for MTD commencement this coming April)

* the only relevance of subsequent variation in those income streams is where ALL such gross income has formally ceased (property sold + trade ceased) PRIOR to entering MTD - in which case it should negate the need to register for MTD

* once you are 'in' MTD then you must remain 'in' for a minimum of 3 years EVEN if your gross income from these types of trade falls to the point of being wholly non-taxable.

* the only way to get 'early release' from MTD once registered, is where ALL relevant gross income from these types of trade has formally ceased (although the method for achieving that release is not yet clear).

MTD is planned to be the 'Hotel California' of tax collection (whilst they work on the death of SA whose announced demise was premature)!


"Hotel California" by the Eagles is a metaphor for the dark underbelly of the American Dream, 1970s Los Angeles hedonism, and the self-destructive excess of the music industry. It depicts a "journey from innocence to experience," where fame and luxury become a gilded cage. The famous line, "You can check out anytime you like, but you can never leave," represents the inability to escape the consequences of addiction, greed, and a materialistic lifestyle.

[etf]

MTD4IT-a poisoned chalice for political parties attempting to introduce it.

Tories-obliterated
Labour-obliterated

And this before it has even been introduced..the real shit has yet to hit the fan.

Zero political acumen in the HQs of the above parties and both so wasteful with taxpayer dosh.