Stop The Software Tax
Stop The Software Tax
The Issue
From April 2026, the way millions of self-employed people and landlords report their income is changing. Under "Making Tax Digital" (MTD), the current free HMRC online tax return portal will be removed for those in scope. The threshold limit is sales and income (not profit) of £50,000 from April 2026, dropping to £20,000 by April 2028.
“MTD aims to help close an estimated £47 billion tax gap. We support that. But forcing small businesses to pay for software? That’s not fair. HMRC already provides free tools for Universal Credit. Why not for MTD?
Instead of providing a government-built replacement, HMRC is forcing taxpayers to use third-party commercial software. This effectively privatises the tax collection interface, forcing individuals to pay monthly subscriptions just to meet their legal obligations.
Why this is unfair:
1. Double Taxation: Taxpayers are already paying tax. They should not have to pay a private company for the privilege of paying that tax.
2. Broken Promises: The "free" software market is a myth. Most options are limited "freemium" products designed to upsell you. A statutory obligation should not rely on commercial goodwill.
3. The Universal Credit Standard: When the government moved benefits online, they built the system themselves (Universal Credit) to ensure access for all. They should do the same for taxpayers.
4. Burden on the Smallest: For a small business, freelancer or landlord caught by this, complex accounting software is overkill. Simple spreadsheets work perfectly well, but HMRC refuses to provide a free "bridge" to submit them.
Our Demand: We are not asking to stop digitalisation. We love it, and support modern accounting. We ARE demanding that HMRC/Treasury release a free, state-owned, basic software tool (or bridging tool) that allows any taxpayer to comply with MTD regulations without incurring costs to private software vendors.
If the government stands to gain £47 billion by closing the tax gap, the government can afford to build the door that business needs to walk through.
Mahmood Reza
I Hate Numbers
Want to help even more? Join our supporters’ list here to get updates and spread the word!
1,495
The Issue
From April 2026, the way millions of self-employed people and landlords report their income is changing. Under "Making Tax Digital" (MTD), the current free HMRC online tax return portal will be removed for those in scope. The threshold limit is sales and income (not profit) of £50,000 from April 2026, dropping to £20,000 by April 2028.
“MTD aims to help close an estimated £47 billion tax gap. We support that. But forcing small businesses to pay for software? That’s not fair. HMRC already provides free tools for Universal Credit. Why not for MTD?
Instead of providing a government-built replacement, HMRC is forcing taxpayers to use third-party commercial software. This effectively privatises the tax collection interface, forcing individuals to pay monthly subscriptions just to meet their legal obligations.
Why this is unfair:
1. Double Taxation: Taxpayers are already paying tax. They should not have to pay a private company for the privilege of paying that tax.
2. Broken Promises: The "free" software market is a myth. Most options are limited "freemium" products designed to upsell you. A statutory obligation should not rely on commercial goodwill.
3. The Universal Credit Standard: When the government moved benefits online, they built the system themselves (Universal Credit) to ensure access for all. They should do the same for taxpayers.
4. Burden on the Smallest: For a small business, freelancer or landlord caught by this, complex accounting software is overkill. Simple spreadsheets work perfectly well, but HMRC refuses to provide a free "bridge" to submit them.
Our Demand: We are not asking to stop digitalisation. We love it, and support modern accounting. We ARE demanding that HMRC/Treasury release a free, state-owned, basic software tool (or bridging tool) that allows any taxpayer to comply with MTD regulations without incurring costs to private software vendors.
If the government stands to gain £47 billion by closing the tax gap, the government can afford to build the door that business needs to walk through.
Mahmood Reza
I Hate Numbers
Want to help even more? Join our supporters’ list here to get updates and spread the word!
1,495
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Petition created on 6 December 2025