Thousands of people are testing the Making Tax Digital system before it becomes mandatory for some next year
The UK government is overhauling the tax system with the rollout of the Making Tax Digital platform, which becomes compulsory for certain taxpayers next year. Currently, thousands of volunteers are trialling the system and HMRC has now released the inaugural testing newsletter distributed to these participants, revealing several crucial modifications driven by their input.
HMRC disclosed that testers expressed a desire for enhanced communication, which led to the establishment of the newsletter that will be issued every three months throughout the testing period. Participants also highlighted that no confirmations were being sent to verify that HMRC had received their quarterly submissions.
“We know some software products will already be doing this,” HMRC responded. “Taxpayers and agents can also check this at any time via their digital tax account, and we will be updating guidance to make that clearer. We will use this testing year to find out if there is more we need to do.”
Testers also cautioned the department that it would require support for “more diverse needs and increasing demands” as participant numbers grow.
HMRC has now created a “comprehensive customer support model” to assist testers during this phase and afterwards.
The department also emphasised: “All participants joining the testing phase receive a welcome letter; outlining a dedicated customer support team exclusive to beta participants which will help with any issues they are experiencing.”
From April to June 2025, the department has been trialling the sign-up procedures to ensure it can cope with high volumes and functionality, allowing testers to have multiple agents, such as one for their quarterly returns and another for end-of-year submissions.
Starting in August, taxpayers and agents were able to submit their first quarterly update using MTD software.
This also saw HMRC testing the accuracy of estimated payments on accounts and the ability to carry out specific activities on a taxpayer’s digital tax account, like adding or ceasing an income source and opting in or out of the service.
Once fully operational, the MTD system will enable businesses, landlords, and self-employed individuals to maintain digital records and file tax returns via MTD software. This will supersede paper-based record keeping, with HMRC hailing it as the “biggest change to Income Tax in over 30 years”.
MTD will become compulsory for some people as early as April next year, but currently, thousands of testers are already utilising the system.
