HMRC issues statement over calls to stop imminent income tax change
HMRC issues statement over calls to stop imminent income tax change
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HMRC issues statement over calls to stop imminent income tax change

James Rodger 🕒︎ 2025-11-01

Copyright birminghammail

HMRC issues statement over calls to stop imminent income tax change

HMRC has broken its silence over calls to stop an imminent income tax change. An online petition calling for planned changes to make tax digital from April 2026 to be scrapped has received a response from the Labour Party government. Saira Khan, who started the petition, has demanded Making Tax Digital be scrapped. The calls have received tens of thousands of signatures backing it. In a statement in reply, t he Treasury continued: "Making Tax Digital delivers value for money by increasing the amount of tax collected. This ensures that more money can go to funding vital public services, like the NHS , and supporting growth across the UK. READ MORE Motorway drivers face unexpected £200 fines after 'being held accountable' "Making Tax Digital for VAT has already been successful at reducing error and increasing tax revenues. HMRC's published evaluation shows Making Tax Digital generated additional VAT revenue, as forecast, in the range of £185 million to £195 million in 2019 to 2020. "Making Tax Digital for Income Tax will build on this, and we expect it will result in an additional £1.95bn in tax cumulatively between its introduction and the 2029-30 financial year." The Treasury added: "Making Tax Digital for Income Tax is a new approach that uses modern technology to help customers stay on top of their tax affairs and avoid errors. "It will build on the successful introduction of Making Tax Digital for VAT which applies to over 2m VAT-registered businesses." It continued: "The Government understands this is a big change for many taxpayers and agents, and it is committed to supporting them through the transition. "It has worked with the software industry to ensure there is free and low-cost software available to support smaller and simpler businesses." Once the 'Stop HMRC implementing making tax digital and enforcing quarterly submissions' petition reaches 100,000 signatures, it will be considered by the Petitions Committee for debate in Parliament.

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