Source · Select Committees · Public Accounts Committee
Recommendation 33
33
Acknowledged
HMRC needs robust plan to communicate Making Tax Digital changes to taxpayers
Conclusion
As well as having significant parts left to design and test and have the software development industry buy into and build products, HMRC also needs to plan how it will communicate these changes to its customers. HMRC told us that it had a very strong communication plan and it was working with the software industry to do some joint marketing because they can reach more customers working together. HMRC did not confirm how it would communicate with customers who do not use accounting software currently but said that it had milestones and a plan in place to ramp up awareness. In answer to questions about its communication plans, HMRC told us it had learned from the programme’s introduction for VAT that businesses would say “come back and tell me when I need to do something”. It said that while it did want to build up awareness in advance with agents, it wanted to give taxpayers notice for when they need to actively do something.84 79 Q 50, 57–59 80 Q 73; C&AG’s Report, Figure 5 81 PTD0002, Written evidence submitted by Rossmartin Tax Consultancy Limited, 19 June 2023 82 PTD0005, Written evidence submitted by Coachbuilt Cars Ltd, 19 June 2023, C&AG’s Report, para 2.7 and 2.8 83 Qq 74–75 84 Qq 90–92 Progress with Making Tax Digital 23
Government Response Summary
The government agrees with the conclusion, recognising the importance of certainty in the MTD delivery plan. It outlines ongoing efforts, including sharing detailed plans and a roadmap with partners, seeking feedback on communication plans, and short-term focus on beta testing, with additional messaging planned closer to April 2026.
Government Response
Acknowledged
HM Government
Acknowledged
5.7 The government agrees with the Committee’s recommendation. Target implementation date: April 2026 5.8 Making Tax Digital is central to the delivery of a digital and modernised tax administration system. The government recognises that HMRC’s customers and delivery partners need certainty and assurance over the delivery plan for MTD. 5.9 The government announced the phased mandation timeframe of MTD for ITSA in December 2022. This announcement recognised the significance of these changes to HMRC, taxpayers and delivery partners - alongside the challenging economic environment facing small businesses. It was also informed by HMRC’s detailed internal planning. 5.10 Following the announcement of the outcome of the small business review in November 2023, HMRC has also shared detailed plans and a delivery roadmap with key external partners involved in the delivery of MTD. 5.11 HMRC has also sought feedback on its communications plans from agent representative bodies, software developers and tax agents and will continue to do so alongside sharing key messages and assets where available. Short-term plans are focussed on supporting software developers, agents, self-employed people, and landlords to take part in beta testing. 5.12 As April 2026 approaches, additional messaging will be introduced to encourage those outside of testing to prepare for the new requirements. 5.13 The government will ensure that any future decisions that affect customers or delivery partners – such as any future decision to amend the income threshold for mandation into MTD – provides adequate time for all parties to prepare.