Searches for info on Making Tax Digital have surged in current months, suggesting that HMRC could also be struggling to offer the required assist to self-employed companies, UK-based monetary agency RIFT has revealed.
New evaluation by RIFT of each Making Tax Digital search volumes and HMRC response ranges demonstrates that while many self-employed enterprise house owners could also be trying to organize aptly, they aren’t receiving the assist they want from HMRC.
In April 2026, Making Tax Digital for Earnings Tax Self-Evaluation (MTD ITSA) will turn out to be necessary for self-employed people and landlords within the UK incomes over £50,000 yearly. This new system requires digital record-keeping and HMRC-approved software program to submit quarterly updates of earnings and bills, with a last digital declaration nonetheless required by 31 January following the tip of the tax yr.
Whereas the transfer to digital reporting goals to enhance accuracy and supply real-time visibility of tax obligations, it introduces new challenges. Companies might want to put money into appropriate software program and should face further administrative or accountancy prices. The shift additionally brings a brand new penalty system: lacking quarterly deadlines might result in fines and curiosity expenses, including strain on companies to remain organised all year long.
The brand new evaluation exhibits that there was an enormous surge in search volumes by these in search of info on find out how to get compliant forward of subsequent yr’s deadline. The numbers present that in Q3 of final yr, a median of 8,760 searches for ‘Making Tax Digital’ have been made every month.
This remained largely constant at 8,386 per 30 days throughout This autumn, nonetheless, this determine climbed to 19,819 on common per 30 days in the course of the first three months of this yr, largely pushed by a spike of 34,017 searches in March.
To date in Q2 (April and Could) of this yr, searches for info with reference to ‘Making Tax Digital’ have surged once more, this time to a median of 43,648 searches per 30 days.
Is HMRC falling brief?
Further evaluation of Gov information on HMRC response occasions, carried out by RIFT, means that this elevated seek for info has been pushed by an elevated problem in making contact with HMRC.
The evaluation exhibits that in January of this yr, simply 82.3 per cent of all calls to HMRC have been dealt with, down from a current peak of 90.2 per cent in October 2024. This determine fell once more in February of this yr to simply 80.9 per cent – the bottom degree within the final six months.
On the identical time, some 245,952 calls weren’t dealt with by HMRC in October of final yr, with this determine falling to 213,747 in December. To date this yr, 599,057 calls went unhandled in January, with 516,629 not dealt with in February.
Bradley Submit, MD of RIFT, commented: “April 2026 could appear to be some time away but, nevertheless it’s clear that the modifications on the horizon because of Making Tax Digital are already on the forefront of many self-employed enterprise house owners.
“Sadly, HMRC merely isn’t outfitted to facilitate the surge in demand for its steerage and recommendation forward of such a notable change, and it’s clear that many are having to hunt their very own solutions by way of the web.
“For these in worry of being penalised by way of no fault of their very own, various assist is obtainable. Working carefully with an accountant or tax specialist forward of the April 2026 deadline could make the transition smoother and assist keep away from penalties and we strongly advise that you just just do this when you’re failing to get the solutions you want from HMRC themselves.”
