Accounting groups express concern about tax digitalisation plan

Tax practitioners are concerned about the Government's proposed introduction of digital record keeping and reporting requirements for many income taxpayers, according to a survey.

The survey, conducted by the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT), sought members' views of the feasibility and benefits of the April 2026 start date for Making Tax Digital for income tax self-assessment (MTD for ITSA).

Over 500 members responded to the survey, with 70% saying they thought April 2026 was an unrealistic start date for the scheme and 95% saying they were not confident HMRC could oversee its implementation.

Another 87% of tax practitioners doubted MTD for ITSA would achieve HMRC's goal of closing the tax gap.

Alison Kerrey, chair of the joint CIOT/ATT digitalisation and agent services committee, said:

"HMRC's insistence that MTD will make lives easier, as well as closing the tax gap, continues to be met with scepticism. There is a real lack of confidence that a convenient, user-friendly and effective system will be ready to go by April 2026."

The Government has launched a review into how to shape MTD for ITSA to fit the needs of smaller businesses, particularly those under the £30,000 income threshold.

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