Recommendation 22

In December 2022 Ministers took the decision to delay the inclusion of taxpayers with Self Assessment incomes below £30,000 in Making Tax Digital due to concerns about customer costs and burdens. Many of HMRC’s stakeholders have welcomed this decision.49 However, HMRC could not tell us its plans to provide specific support to those taxpayers with lower incomes, or who are more vulnerable, except for those who may be entitled to an exemption from being mandated.50 HMRC also said it would now need to stratify the customer costs and burden information it held for those with incomes over £10,000 into HMRC’s new income groupings for those with incomes over £50,000, those between £30,000 and £50,000 and those below £30,000.51 HMRC said it still needs to test if the additional financial and administrative burden is likely to be higher for those at the bottom end of the income scale.52