Research to explore the customer decision-making process of choosing compatible software for Making Tax Digital
Research into the key considerations for business when choosing Making Tax Digital software.
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HM Revenue and Customs (HMRC) commissioned independent research agency, Kantar Public, to undertake qualitative research into the experiences and main considerations of VAT registered businesses when choosing and using compatible software for Making Tax Digital (MTD). The research looked at:
- the steps involved in choosing MTD-compatible software
- the key factors and features considered and prioritised by taxpayers
- the information gaps that prevent businesses from choosing the software that better suits their needs
- the main sources of dissatisfaction of customers with MTD-compatible software
The research comprised 50 in-depth interviews and 4 focus groups with business customers registered for VAT in the UK, currently affected by MTD rules.
Contextual note: This research was carried out in March and April 2022. At this time, MTD for Income Tax Self Assessment was due to be introduced from April 2024 for self employed individuals and landlords with a gross income of £10,000 and above.
On 19 December 2022, the Government announced a longer period for self employed individuals and landlords to prepare for MTD. From April 2026, self-employed individuals and landlords with a gross income of more than £50,000 will be required to keep digital records and submit returnsusing MTD-compatible software. Those with a gross income of between £30,000 and up to £50,000 will be required to do so from April 2027.
Last updated 6 July 2023 + show all updates
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Added the 'Appendix 1: sample tables - depth interviews' and 'Appendix 2: Sample Tables: Focus groups' at the end of the document.
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First published.