HM Revenue and Customs (HMRC) is under fire for allegedly failing to provide sufficient support to millions of self-employed workers and landlords set to face sweeping changes to the tax system next year.
From April 2026, the government’s Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) initiative will become mandatory for all self-employed individuals and landlords earning over £50,000 annually. The move, which aims to modernise the UK’s tax reporting system, will replace the traditional single annual tax return with quarterly digital submissions of income and expenses through HMRC-approved software.
While the goal is to improve efficiency and reduce errors, concerns are mounting over the readiness of taxpayers—and HMRC itself—for the transition.
An analysis by finance firm RIFT suggests a worrying lack of support from HMRC as the deadline looms. The study highlights a dramatic increase in online searches for information about MTD, with search volumes surging from 8,760 per month in Q3 of 2024 to over 43,600 per month in Q2 of this year. March alone saw a peak of 34,017 searches as individuals scrambled for guidance.
The spike in interest comes amid signs that contacting HMRC for help is becoming increasingly difficult. According to RIFT’s analysis, just 82.3% of calls to HMRC were answered in January 2025, down from 90.2% in October 2024. The figure dipped further to 80.9% in February, marking the lowest response rate in six months.
Unanswered calls are also on the rise, with over half a million calls going unhandled in both January and February of this year. Meanwhile, the average waiting time to speak with an advisor has more than doubled, rising from 10 minutes 40 seconds in October 2024 to 21 minutes 4 seconds in February 2025.
Businesses affected by the change will not only need to invest in new software but also navigate a new penalty system. Missing quarterly deadlines could result in fines and interest charges, adding to the administrative burden.
A spokesperson for RIFT warned that HMRC is not adequately prepared for the scale of support required:
“HMRC simply isn’t equipped to facilitate the surge in demand for its guidance and advice ahead of such a notable change, and it’s clear that many are having to seek their own answers via the internet.”
As the countdown to MTD continues, the pressure is on HMRC to improve accessibility and provide clearer support to the millions of taxpayers about to enter a new era of digital compliance.