MAKING TAX DIGITAL - ALL SYSTEMS GO!
Catch-up on the tax changes HMRC did (and did not) announce on 23 March.
www.taxsystems.comHere’s the latest I can share based on recent reporting up to early 2026.
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What’s changing: The Making Tax Digital (MTD) program is expanding beyond VAT to include more individuals and types of taxes. The focus remains on digital record-keeping, quarterly updates, and timely submission of tax data to HMRC, with penalties for non-compliance under the evolving framework. This is part of HMRC’s broader push to modernize the tax system and reduce the annual tax return burden for many taxpayers. Official guidance and rollout plans have been updated periodically as the program progresses.[1][2]
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Who is affected now: The scope has been phased, with testing and mandatory implementations extended to additional groups over time. In 2025–2026, HMRC signposted concentrations on ITSA (income tax self-assessment) testing and broader IT systems integration, with some guidance on when mandation might apply to different income sources and taxpayer profiles. Additional groups have been invited to test digital record-keeping and quarterly reporting ahead of full mandation.[3][5]
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Practical implications for filers: If your income sources fall under the current or upcoming MTD IT regimes, you would need compatible software to maintain digital records and to submit quarterly updates to HMRC, in addition to annual tax returns by the statutory deadlines. The program is designed to move away from the traditional yearly self-assessment cycle for many taxpayers toward a more continuous digital process; penalties may apply for late or incomplete quarterly updates and returns once mandation takes full effect.[1][3]
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Regional and industry resources: Professional bodies and accounting firms have provided ongoing briefings, webinars, and sign-up opportunities to help taxpayers understand MTD IT testing windows, connected software options, and transition steps. These resources are useful for preparing if you’re in the higher-risk groups or want to participate in testing ahead of full mandation.[5][9]
Would you like a quick, region-specific brief (New York City/USA context) or a summary focused on the UK’s current MTD IT testing windows and expected mandation timeline for the next 12 months? I can pull the most relevant points and create a simple checklist for you.
Citations:
- HMRC and UK government updates on MTD expansion and timelines[2][3][5][1]