Large scale testing of MTD is vital, says ABAB

It is essential for the making tax digital (MTD) that HMRC has a thorough understanding of smaller businesses shaped by insight research external engagement and expertise says Administrative Burdens Advisory Board (ABAB) in its 2023 annual report. It notes that HMRC aims to start a large-scale public beta testing programme in 2025 and said this testing will be ‘mission-critical for MTD ITSA which is a far more complex proposition than MTD for VAT’. It is vital that as many real-life scenarios as possible are thoroughly and successfully tested through the pilot.

The report states: ‘The programme must have the flexibility to support all individual taxpayers with self-employment or property income above the mandation threshold. Many will seek an end-to-end service that allows them to manage all their personal tax obligations. For others potentially with more complicated business and tax affairs and...