900,000 more people in scope for Making Tax Digital from
April 2028

Today saw further clarity on the government’s Making Tax Digital plans for income tax. The measures are part of the government’s efforts to modernise the tax system and make it more efficient. The government has previously stated that they expect the plans to reduce the tax gap through reducing errors in the records of small businesses. HMRC estimate that errors contribute £5.8 billion to the tax gap. 

Rachel McEleney, associate tax director at Deloitte, commented:
“It was confirmed today that the planned reduction on the lowering of the threshold, down to £20,000, will now take effect from April 2028 – bringing in 900,000 additional people into scope. In addition, HMRC confirmed that certain small groups of taxpayers will be exempt from Making Tax Digital due to its complexity, such as ministers of religion and individuals who benefit from Blind Persons’ Allowance. There will also be a deferral of the obligations until April 2027 for those who would need to make disclosures regarding residence matters.”

Note to editors

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Statement. They can be reached on one of the following numbers: 
  
• Ian Stewart – chief economist (07774 337 581) 
• Amanda Tickel – head of tax policy (07887692978) 
• Rachel McEleney – personal tax (07920 270 964) 
• Ed Roddis – public sector (07785 682226) 
• Toby Price – stamp duty (07920 270 964) 
• Richard Bray – regions (07990 434703) 
• Mark Outtrim – business rates and freeports (07990 434703) 
• Gemma Harris – carried interest (07586 511104) 

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