The Administrative Burdens Advisory Board (ABAB) released its “Tell ABAB” report for 2025–2026 on 15 September 2026, presenting a comprehensive review of taxpayer compliance burdens and recommending concrete actions for HMRC. The independent board, established under the Legislative and Regulatory Reform Act 2006, gathered evidence from over 12,000 taxpayers, agents, and representative bodies. The report highlights persistent pain points in Making Tax Digital (MTD) for Income Tax, VAT compliance for small businesses, and the complexity of payroll reporting. It urges HMRC to adopt a “compliance by design” approach, simplify guidance, and expand digital support.
Key Takeaways
- Making Tax Digital for Income Tax – Simplification Needed: The report finds that quarterly reporting under MTD for Income Tax imposes disproportionate record-keeping burdens on sole traders and landlords with turnover below £50,000. ABAB recommends raising the mandatory MTD threshold to £85,000 (aligning with VAT registration) and allowing annual reporting for businesses below £30,000 turnover, with voluntary quarterly options.
- VAT and Payroll Reporting Streamlining: Key recommendations include merging the VAT return and EC Sales List into a single digital submission, extending the VAT annual accounting scheme to all businesses with turnover under £1.35 million, and simplifying Real Time Information (RTI) payroll reporting for micro-employers by allowing quarterly submissions instead of per-pay-period filing.
- Digital Support and Agent Services: ABAB calls for HMRC to invest in a unified digital portal for agents, enabling bulk client management, pre-populated data from third parties, and real-time status tracking. The board also recommends a “tell us once” framework for life events (e.g., bereavement, address change) to reduce duplicate notifications across tax, benefits, and customs regimes. HMRC has committed to responding to each recommendation within 90 days.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement