Making Tax Digital

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The following must be deluded...have they forgotten MP Murray carried out a thorough investigation of MTD4IT?:

By Justin Bryant
12th Sep 2025 17:55
I would hardly describe these widespread and serious MTD doubts as "niggling" and this is almost certainly going to be a wholesale disaster if it goes ahead and will likely make the HS2 debacle look like a glorious picnic in the countryside by comparison.

By AdamJones82
12th Sep 2025 20:56
Being confident isn't the same as saying it's definitely happening. Interesting choice of words


Replying to AdamJones82:

By FactChecker
12th Sep 2025 21:26
Sounds remarkably similar to the use of: "I have complete confidence in .. X .. who has my full support"

... as uttered by every Football Club chairman a few days before 'letting go' their Manager, or indeed countless politicians (including Starmer - first about Rayner and then about Mandelson).

So can we now start celebrating the death of MTD?

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By Mr J Andrews
23rd Sep 2025 13:16
And even less working days to Christmas.
Another article - either advising what must be done, what are the benefits [ of signing up ] or neutral on MTD. And yet again countered by so much critical negativity.
How about an article actually spelling out the truth about MTD . A whim which has taken 10 years to come to fruition - just about to become rotten. Lies about how it will benefit ''customers'' , insomuch as the additional costs, wasteful administration and time is involved. The additional work for agents - and the loss of clients cast into the wilderness. The crazy points system for racking up penalties. The total useless statistical crap which HMRC will gurgitate with dumb quartely reports. The diversion of HMRC staff from doing constructive work - leading to another coffin nail in their creaking system. It goes on.
''Testing , Testing , Sign Up , Sign Up'' I hear. And all the time the articles pretend that the Software Providers are not the only benefactors. No-one has convinced me to the contrary.
And we still await some feeble response from the HMRC MTD Director , Mr Craig Ogilvie as to the HMRC definition of ''Not Reasonable'' or''Not Practical'' once he gets some advice from those higher up in the food chain, anticipating the flood of Exemption Applications.

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By FactChecker
25th Sep 2025 23:49
I feel underpinning the whole project is a misunderstanding (by HMRC + the software companies + the PBs) that there's an infinite supply of competent, qualified practitioners who are chomping at the bit at the 'opportunity' to take on all these relatively small & cost-conscious taxpayers.

In reality (outside of the relatively small percentage who are already fully 'digitised' and accomplished maintainers of their records), those entering into MTD IT will often be DiYers (who've been told it's easy-peasy so aren't open to taking advice or spending money) ... or those who are already regarded as PITA clients by their current agent.
In neither of those cases are they going to be welcomed by many practitioners - and certainly not at the fee levels that this type of client might be prepared to expect.

Result?
Tens of thousands (probably rather more) of taxpayers without access to the quality of support and advice that they will need -> most of whom will clog up the HMRC points of contact and, after not getting any satisfaction -> will try to unload onto their software vendor (who'll say they don't answer accounting questions, only how their software works).

What is frankly unforgivable is the late announcement that HMRC will not be providing ANY software (not even an SA-like on-line portal) ... on that basis alone I won't be surprised if a sizable quantity of taxpayers make the equivalent unilateral decision not to bother filing.

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By mbee1
26th Sep 2025 11:05
Four of us listened to a webinar yesterday run by our tax software supplier that also had someone from HMRC there. She spoke during the first half of the session and then "tried" to answer during the Q&A. There wasn't much time for the Q&A but of the four questions asked, she couldn't answer three of them and gave a totally incorrect answer on another. I won't post her name here but HMRC are now employing staff with North American accents.

Frankly it was a waste of time and we didn't learn anything new. I thought, before we started to listen, that we were somewhat behind in our plans but it became clear that their are lots of practitioners out there that still have there head buried in the sand.

I think we're all hoping that the Chancellor will backtrack on MTD at the Budget in the same way that the second leg of HS2 was cancelled. Let's hope so before too much more time and effort is spent on this farce.

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By DavidWinter
26th Sep 2025 09:26
This is not a pop at those trying to help by writing this article but the one question I've still not seen answered is 'what is the point?' What do accountants, the customer or HMRC gain from any of this massive upheaval? If anything for us and the client it's just extra cost, in the middle of the worst sustained economic period I can remember.

The only gain I can see is possibly here - 'The MTD for income tax points system allows for one penalty-free late submission in a 24-month period'. It seems to be a lot easier and quicker to rack up fines once this comes in, and during the tax year as well.

This is still the craziest, most obnoxious and pointless thing I've seen HMRC do in 25 years, and that's at the top of a huge list. Do you think they'll sort out their online and telephone services before this comes in?

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By Breckmans
26th Sep 2025 13:50
I am still trying to file my first test submission. I am using bridging software, and I get taken to a webpage that requires an ID check. Has anyone come across this? Apparently I need the details of the person that set up the ASA and unfortunately they left the firm. No one at HMRC appears to know what to do. What a surprise.

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MP Murray...is your Labour party not supposed to support the less affluent in society...not make them poorer in both terms of time and money...and for what gain?


By farrcorfe
26th Sep 2025 15:40
HMRC reckon additional cost to taxpayer of £100? Oh, come on! Software will be an annual cost of c£200 if we're lucky and accountancy will be another £300 so , after tax relief, most of us will be poorer by £400 p.a. HMRC aren't at all embarrassed by the extra time wasted in complying with Making Tax Difficult let alone the financial burden p.a. In with compliance, out with common sense!


Replying to farrcorfe:

By Open all hours
26th Sep 2025 18:27
Even the simple truths evade them. Shysters.

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Has anyone asked Andy Burnham for this thoughts on MTD4IT?

By richard thomas
30th Sep 2025 09:47
Nice that they've opened the door. Pity they haven't yet got planning permission to do so, ie the law on applications for exemption does not come into force until 6 4 2026.

TP applies for exemption today. HMRC refuse it on 30 October. TP appeals, as the webpage says they can, on 1 November. 20 November HMRC says no, and say you can have review or go to FTT. 1 December TP notifies appeal to FTT. FTT says that Rule 20 of our rules says:

"(1) A person making or notifying an appeal to the Tribunal under any enactment must start proceedings by sending or delivering a notice of appeal to the Tribunal."

and your appeal is not under any enactment in force, so we don't have jurisdiction.


Replying to richard thomas:

By Tornado
30th Sep 2025 10:04
Thank you Richard

This project just keeps getting more ridiculous every day and one has to question if anyone at HMRC actually knows what they are doing.

I know that Emma is convinced that this is all going to be OK by April 2026 and MTD will go live, but you only have to carefully look though current topics on AWEB to realise just how many massive holes there are in the Project, some of which are insoluble, making the MTD Tax Return, for example, not even as complete as the Self Assessment Tax Return.

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More shyster behaviour? One rule for them and another for us.


Although HMRC’s guidance says they will aim to reply to applications within 28 days, that time limit has disappeared in the draft legislation recently published for consultation. The actual time taken to secure an answer from HMRC could be significant if there is back and forth correspondence, or more details are requested. It is therefore a good idea to supply as much information as possible when first applying.

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Has anyone asked Andy Burnham for this thoughts on MTD4IT?

Or Wes Streeting?