A large number of business people are unprepared and unenthusiastic about the switch to Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) in 2024, an HMRC survey shows.
In response to the findings, the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) are calling on HMRC to increase the publicity around MTD.
Taken across all categories of taxpayers, the HMRC survey showed:
- 38% agreed using MTD-compatible software would be easy, 35% disagreed and 14% were indifferent.
- 49% agreed submitting quarterly returns would be easy, 39% disagreed and 11% were indifferent.
- 54% of respondents already complete their record keeping quarterly.
- 45% still use paper while only 17% use software.
Andrew Jackson, vice-chair of the joint CIOT and ATT digitalisation and agent services committee, said:
"The survey results show an alarming lack of readiness and enthusiasm for MTD, fuelled largely by a lack of awareness that MTD for ITSA begins in less than two years' time.
"This is why we have encouraged HMRC to publish more detailed guidance about the MTD process, as there are seemingly more questions than answers at the moment."
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