Key problems must be solved before making tax digital is implemented, warns ICAEW

Key problems must be resolved before making tax digital for income tax (MTD ITSA) comes into effect in April 2026 warns ICAEW.

Digitalisation was announced on 18 March 2015 by then chancellor George Osborne as part of his 2015 spring Budget in which he promised that he would ‘abolish the annual tax return altogether’.

After years of delay the current government confirmed in last autumn’s Budget that it would begin phasing in MTD ITSA for sole traders and landlords from 6 April 2026 where their annual turnover exceeds £50 000 and 6 April 2027 where their annual turnover exceeds £30 000.

Caroline Miskin ICAEW senior technical manager digital taxation said: ‘MTD income tax as now being implemented falls far short of the promises George Osborne made ten years ago and remains...