Making Tax Digital

[etf]

Evidence to support Kevin Ringer's earlier post and prove MP Murray's 'thorough interrogation' of HMRC and its MTD4IT plans was anything but :


By FactChecker
05th Feb 2026 21:07
Isn't it time to call a spade a spade?

Those "one-year deferrals from MTD" aren't what people usually understand from that description (a limited duration concession to assist taxpayers).
They're an admission by HMRC that they've failed to design a solution for this cohort within the MTD 'specification' (and still don't have a proposed solution so any 'deferral' may have a lengthy shelf-life).

[the same applies to those without a NINO and most of the other exemption categories - temporary or otherwise]

Given the lack of a solution it's hardly surprising that the operational workarounds (like expecting an overseas taxpayer to keep a weather eye open in case a NINO emerges out of the ether) aren't designed to help the taxpayer - just to dig HMRC out of a hole of their own making!

[etf]

Who will go first Keir or MTD4IT? I thought the former looked rattled at PMQ today so my money is on him (and also because the Labour decision makers wouldn't see an avalanche coming down the mountain if it was one foot away).

Interesting post below for those trying to escape the avalanche coming down the mountain:

By richard thomas
11th Feb 2026 10:37
Yes I'm sure that is what they are trying to do. Just so everyone is clear that law, para 14 Sch A1 TMA 1970 (which is not yet in force) says a person meets the digital exclusion condition (ie is excluded) if:

"for any reason (including age, disability or location) it is not reasonably practicable for the *person* .... to use electronic communications or to keep electronic records."

It is the taxpayer, the person, whose ability to use a computer to communicate with HMRC and (a separate matter) to keep electronic records is in issue, not anybody else's.

If important tax legislation wishes to take an agent into account it says so: eg the penalties legislation.

You obviously can't refuse to answer the agent question or HMRC will imply reject your application, but IRSKTB is right that the application should say (where it is the case) that their agent does not offer bookkeeping services or access to a computer.

[etf]

Labour/Tories equally clueless...if it is all sooooo straightforward why 10 years on is an untested system going to be unleashed...what was the point of some dignatory undertaking a review and stating any system must be fully tested before going live, only for the berks in charge to ignore his findings? Moronic behaviour...what hold do the software companies have over MPs to turn any grey matter present into mush?

Idolisers of MTD will be pleased to see this statement made in Committee stage abouyt MTD:

“This is all fairly straightforward. We are delighted that, since coming to power 18 months ago, the Government have decided that they are going to follow on with the great initiatives of the last Government, and I thank the Minister for so enthusiastically celebrating our achievements.”

Mark Garnier MP: Shadow EST MP for Wyre Forest (Con).

Traders and landlords in Kidderminster and its surrounds may wish to note.

[etf]

By Tornado
12th Feb 2026 09:37
"Ogilvie said that the public target is to sign up 800,000 customers for full mandation by April 2026. He added: “So far, about 5,000 have signed up for April 2026 mandation, and we are pushing to increase that quickly."

This man is very cool about figures like this. In fact HMRC estimated that 864,000 people need to register for the 2026/27 year but he seems unconcerned that there are some 859,000 still to go in just a few weeks.

I think he is living in a Fantasy World.

[etf]

By Open all hours
11th Feb 2026 13:46
Can’t fault them for trying. It has taken scores of emails, a zoom meeting and more to resolve a problem between Quickbooks and HMRC - nothing of our making but the time it has consumed here you can imagine.
800K of the unwilling joining in 7 weeks time takes some imagination.

[etf]

HMRC trying to stop people wishing to claim avalanche exemption....no wonder Wes says there is no plan for economic growth.....those affected are wasting time with this shit and so are prevented from doing real work...and for what gain? JP -a billion Marks sort your house out...how much un-answered post have you got over 12 months old?

By FactChecker
11th Feb 2026 15:27
"In other words, if the client cannot create digital records, and the agent is not already engaged to create them, exemption is possible" ... you might think, or hope, that.

BUT, based on Paul's experience (below at 15:17), when he stated that:
"submitting quarterly reports was not maintaining digital records, and that we are not bookkeepers, and do not offer it as a service."
The responses were:
"Why cannot client learn how to use a spreadsheet?"
"What about his age stops him from learning how to keep digital records?"

Those are NOT the responses of someone judging the taxpayer against legislative criteria referenced by Richard (para 14 Sch A1 TMA 1970) ... which says a person meets the digital exclusion condition "for any reason (including age, disability or location) it is not *reasonably practicable* for the person .."

Those responses are aggressive questioning by someone on a target (possibly even a commission) to minimise exemptions - and who makes no reference to the official criteria.

[etf]

dignitary... not as above

[etf]

By FactChecker
12th Feb 2026 15:09
Full marks for honesty from the two 'guinea-pigs' ... BUT it really doesn't paint an attractive picture to entice those who are prepared to gamble on a last-minute hesitation from HMRC.

Whilst obvious with hindsight (and TBH predicted by many for the last couple of years - since HMRC 'got serious' about the project once more), there's no mention of ANY benefits for clients ... and plenty of pain for Agents:

- “You start to wonder how much time we’re actually going to be spending on this and whether that’s going to be reflective of what we’re going to be charging”
- “What we thought was a five-minute process (registering a client for MTD) actually ended up taking nearly two days because we hadn’t factored in all these things”
- "One of the biggest challenges that remains is client resistance ... Her firm tried multiple approaches, including early adopter discounts"
- “We felt like our current software wasn’t going to be right for the lower £30k turnover clients being mandated in 2027, so we’ve shifted across, which has been chaotic”
- "She also acknowledged the need to potentially disengage with clients who refuse to change their ways ... where clients are unwilling to engage or repeatedly push back, capacity has to come first"

So in summary:
* Agents take all the pain (for no direct pay and possibly with -ve impact due to discounts)
* Clients are (unsurprisingly) unimpressed and unwilling to contribute extra (time or money)
* Agents are moving to a 'our way or the highway' stance with regard to the software used
* Clients risk being told that their custom is no longer wanted (not due to anything they've done)

Well done HMRC ... now if only there was some evidence that they will be ready to make use of all the data coming their way from all that extra effort - or indeed to implement an incomplete TR system!


Replying to FactChecker:
avatar
By Newagent
12th Feb 2026 15:53
I still think it could well get delayed or their systems will crash. Not doing anything (yet).


Replying to FactChecker:
Tornado
By Tornado
12th Feb 2026 16:02
Excellent Summary FC

All of this can be summed up in just one word -

POINTLESS

What is all of this actually going to achieve?


By Paul Crowley
12th Feb 2026 16:05
Even if mandated in and no choice to do anything but comply, quarter two or three is good enough.



By ireallyshouldknowthisbut
12th Feb 2026 16:34
Re dumped clients, our phone has been ringing off the hook this past 2 weeks, I had to put up note up on the website which effectively says "if your acountant has dumped you over MTD, dont bother calling"

These come in two parts, one a flood of retirements, and two a couple of large local firms seem to be offloading a load of clients. Mostly low tech nice small jobs frim nice people who run small services businesses, we which ordinarly we love doing as all they want is a friendly chat and to know what things that can claim, and not be stiffed on the bill but not now. They are not going to use software, which is why they have been dumped.

Moreover we are not working on one off advice as I dont have the time, and dont want to convert those jobs into longer term prospects. I turned down 2-3 early stage business who just need a 'hand hold' and normally I would be delighted to help in Feb/March for nothing as they may turn into a proper business in time.

This is a huge loss of experience and time from advisors which would be better directed into the general economy wasted on "busy work" which no-one wants to do and it just an admin headache.

[etf]

Sound familiar....?


The UK’s National Savings and Investments (NS&I) bank is exposing taxpayers to “unacceptable risk” because it lacks understanding of the cost of a digital project that had already hit £3bn.

The Public Accounts Committee (PAC) said NS&I has not accepted what went wrong with the project, which was designed to modernise its operations.

Costs have increased by £1.3bn since the project started, according to a National Audit Office (NAO) report.

Geoffrey Clifton-Brown, chair of the PAC, said the NS&I project “has been a full-spectrum disaster”. In a report, the committee of MPs said: “NS&I has no workable plan, lacked the skills to deliver it, and has no idea of eventual cost of the project.”

The project cost “an estimated” £3bn by the end of 2024, but the PAC warned that taxpayers’ money could continue to be channelled into the project without assurance that it will be delivered.

Last month, the government confirmed £109m in additional funding, pending parliamentary approval. “Deeply concerningly, NS&I were unable to tell the PAC how much had been spent on the programme to date,” said the PAC.

The committee warned that while £43m of taxpayers’ funds has been spent on consultants for the project, the NS&I “is vague on how it holds them to account”. It added that there are further risks to NS&I’s whole business, and especially its customers, if the programme is unsuccessful.

[etf]

800,000 people will have another reason to hate this Labour Government if this is par for the course!


Signing up for MTD problems
MTD

Tried to sign myself up for MTD. Thought I would sign up myself before I start on the clients. Tried 3 times this week, completed and answered all the questions and then at the end keep getting a message saying (something is wrong) anybody have any ideas!

By JB101
13th Feb 2026 15:41
In one and half months time you'll hear it was all an April Fool's prank.
The error is HMRC told everyone too early!


By PennyPincher
13th Feb 2026 16:37
no plans to sign anyone up until maybe the month before. work will be done in the background to make sure the client is ready but will leave HMRC to iron out the issues with their process until we need to take action.


Tornado
By Tornado
13th Feb 2026 17:28
Thank you for testing out this process (which should be foolproof by now).

I don't plan to register anyone for MTD for at least a couple on months after 5th April 2026 when I hope that the Registration Process at least will be working correctly.


By cbp99
13th Feb 2026 18:57
Far too soon to be getting involved with the MTD shambles, but thanks for the progress report, it's nice to know things are going as expected.


By SteHolt
13th Feb 2026 19:35
Must hurt when you go to lick the boots, but find that they won't let you


By Refs1
13th Feb 2026 20:37
Usual HMRC service continues…