Making Tax Digital

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Replying to Rob Swan:

By Southwestbeancounter
07th Jul 2026 15:54

Well I wish they'd get on with it! We need ITV to do a good bit of investigative journalism like they did with the Post Office scandal!
I'm using IRIS Elements as my MTD bridging software (as I use if for MTD for VAT and it does the job so why would I pay out any more in software licences than I have to) and it's doing my head in! I've now got my 'case' escalated but I know I'm not alone - I haven't got hours and hours to waste on this ridiculous shambles!!

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Someone needs to haul MP Murray back from the Health Ministry and ask him why his thorough interrogation of HMRC failed to uncover that MTD4IT is not ready. And someone needs to haul Starmer from number 10 and ask him why he rewarded such ineptitude with a promotion.

Unforeseen MTD pilot issues. Any suggestions?
Our client has no information showing for 25/26 on the old system? New system?

We have signed up a client for the MTD pilot and we have made all the quarterly submissions for the 25/26 tax year. We have completed the accounts for the 25/26 tax year but cannot submit the 'tax return' (or whatever the MTD equivalent is going to be called) because our software provider has not yet made the software available. I am not even sure if HMRC is ready for those returns. This in itself is iritating, but we are learning to be patient. The client has now asked about his July payment on account, and my colleague thought they would have a look on the HMRC portal to see where the client was up to. Of course the 25/26 year does not exist on the old self assessment system because they are signed up to MTD. We think they have made the first payment on account in January but can no longer check like we used to. So we went to the Agent Services Account to see what shows there under MTD. The answer is 'nothing whatsoever'- unless we have missed something obvious. So we can't see any payments on account and there is no information regarding what HMRC are expecting.

We would not have signed up for the pilot had we reaslised that HMRC were so completley unprepared. Do we file the tax return via the self assessment system just to get it out of the way? Does anybody know when the software providers will have the end of year returns ready for use? Does anybody know when and what information we will get via the Agent Services Account when it is finally working?

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By Locutus
08th Jul 2026 16:25
When the enrolment threshold goes down to £30k and later £20k, there will be a bloodbath of non-compliance from unrepresented taxpayers.

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By D V Fields
09th Jul 2026 21:16

ireallyshouldknowthisbut wrote:
On a similar note, can accruals vs cash be decided on filing the annual return as now? Or are you stuck in a lane? Clearly this is something we use for tax planning right now in terms of picking 'which is best' for a given set of circumstances.

I raised this at a CPD forum as my view was that choosing the method at the outset was contradictory to current legislation. The response I received was along the lines of it was known to be wrong and would be addressed. It struck me that appeasement was the name of the game and the response I was going to give would have seen me barred.

Incompetence from HMRC has no borders

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Does Andy Burnham really want to continue Labour's quest to screw small businesses?

By sijolees
09th Jul 2026 15:15
Thanks everyone. What a waste of time and effort it all is!

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How does implementing a new expensive tax reporting system which has different rules and requires perhaps nine returns instead of one reduce business burdens?


"In summary, our Charter and charity status require us to do two key things in pursuit of a better – and better understood – tax system: to help and to challenge. To help reduce business burdens.

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By sparkler
10th Jul 2026 16:19
Today, I managed to get through to a helpful call handler on the MTD line (Option 2 then Option 3 of the Agent Helpline). I explained the problem and was told that taxpayers who are acting through attorneys under a registered Lasting Power of Attorney are currently exempt from MTD on a temporary basis until April 2027.

The reason given is that HMRC's MTD systems are currently not able to cope with taxpayers of this nature.

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By FactChecker
09th Jul 2026 19:28
Well we can quibble (as HMRC appear to be doing quite often) over interpretation of the rules ... but on the surface it seems clear enough to me:

* "According to HMRC, digitally excluded means it’s not reasonable for a taxpayer to use compatible software to keep digital records or submit them to HMRC" ...
... note the 'or' (not being reasonable 'to keep digital records' is enough).
https://www.att.org.uk/technical/news/making-tax-digital-exemptions-appl...

Mind you, HMRC do enjoy showing they have a (warped) sense of humour:
"Unless a taxpayer is automatically exempt on income or other grounds, they will be legally required to fulfil the MTD requirements to keep digital accounting records and submit quarterly updates to HMRC until such time as their exemption has been granted."

So until they've granted your exemption, you are legally require to do things that (according to your application) you are incapable of doing! Clever, eh?

A system devised by fcukwits

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These comments suggest there is little chance of the fcukwits being challenged...result... small businesses are drowning.

By DoubleEntryTwice
11th Jul 2026 14:32
All the "great and the good" of the tax profession. All in bed with HMRC. That's who they are really serving. Not the profession. Not really.


By AdamJones82
11th Jul 2026 17:41
Tax simplification, that's a joke, rules and regulations are the most in number they've ever been



By Rob Swan
12th Jul 2026 08:16
Sounds like a 'jolly junket' for those attending but...

Better Tax Administration? No, it's getting worse, much worse, much faster.
Mandatory Regulation? More 'interference', bureaucracy, box ticking, busywork.... [endless list]
Tax Simplification? Who's kidding who?
Ultimate Goal? Sounds like 'Fun was had by all'.

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MP Murray...thorough interrogation failure.

MTD for Income tax- I'm having so much fun already
and only 16 clients this year

I honestly do not know how as a practice we deal with this next year. Small practice with one FT, one PT and me. We are almost half way through submissions this month, and every single one has had some kind of issue