Research and analysis

Income Tax Self Assessment: Readiness for Making Tax Digital

Research exploring the preparedness and support requirements of customers in response to Making Tax Digital for Income Tax Self Assessment mandation in April 2024

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Details

The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs (HMRC).

HMRC commissioned Ipsos to undertake this research to explore the preparedness of Income Tax Self Assessment (ITSA) customers, in the lead up to Making Tax Digital (MTD) mandation in April 2024. This population is comprised of unincorporated small businesses, self-employed people, and landlords with income over £10,000. The primary aims were to understand:

  • current record keeping practices in meeting ITSA obligations
  • current attitudes towards engagement with MTD
  • ability to comply and support needs in transitioning to MTD

The customers involved in this research were segmented into 6 distinct groups based on their support needs, formed from responses to 2,200 phone surveys and 30 in-depth interviews with customers who will be making the change to Making Tax Digital for ITSA in 2024. Fieldwork took place between February and August 2021.

Published 26 May 2022