On 12 October 2026, the Low Incomes Tax Reform Group (LITRG), part of the Chartered Institute of Taxation, issued a warning that unrepresented taxpayers face a complex minefield when selecting software to comply with Making Tax Digital for Income Tax (MTD). The group called on HM Revenue & Customs (HMRC) to significantly enhance its online software finder tool to help taxpayers identify the most suitable package for their specific circumstances. This intervention comes as the first quarterly MTD filing deadline has passed, highlighting practical compliance challenges for vulnerable taxpayers.
Key Takeaways
- Software Selection Complexity: Unrepresented taxpayers, often with limited digital skills or financial resources, struggle to navigate the crowded market of MTD-compatible software, risking non-compliance or unnecessary costs.
- HMRC Tool Enhancement Needed: LITRG urges HMRC to improve its software finder with better filtering, clearer pricing information, and tailored recommendations for low-income and digitally excluded users.
- Soft Landing Period Not a Free Pass: Despite HMRC’s 12-month soft landing for penalties, taxpayers must still meet quarterly reporting obligations; the software choice is critical for ongoing compliance.
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