Scrap Quarterly Updates in MTD for Income Tax for Non-VAT Registered Businesses

We, the undersigned accountants, taxpayers, and small business owners, are calling on HMRC and the UK Government to scrap the requirement for quarterly updates in Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) — at least for non-VAT registered individuals.

We support the move towards digital record keeping and modernising the tax system. However, the current MTD for ITSA model imposes an unnecessary burden on millions of low-income self-employed individuals and landlords, who are not VAT registered and do not need quarterly reporting.

Key concerns:

Quarterly submissions are excessive for people with straightforward income.

Many affected taxpayers don’t have accountants and will struggle with digital tools or deadlines.

The added cost of software, training, and time could outweigh any benefits for non-VAT clients.

HMRC's own delays and lack of clear communication show the system isn't ready.

We are asking HMRC to:

Remove the quarterly reporting requirement for non-VAT registered taxpayers.

Consider an annual digital update instead — maintaining the digital aspect without overburdening taxpayers.

Engage with the accounting profession to develop a more realistic and supportive approach.

Let’s make tax digital, not difficult.

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