MTD for ITSA: CIOT and ATT survey results

Our survey was undertaken in the first half of December 2022. We received 332 responses.

The survey questions, and a summary of the responses (excluding freeform comments), is below:

Q1 - Do you think that Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), in its current form, can be successfully introduced from April 2024? [select one]

Yes	3%
No	97%

 

Q2 - If no, what do you think should happen next? [select no more than two]

Pause the project, and consult on the future of MTD	47%
Carry on, but on a voluntary basis and only make mandatory when all MTD processes have been proven to work	31%
Announce a blanket deferral and make mandatory at a fixed future date	8%
Carry on, but with a significant increase to the £10k turnover threshold	29%
Carry on, but defer specific groups eg landlords	14%
Other (please specify)	12%

 

Q3 - How do you feel about the following aspects of MTD for ITSA implementation?

	Very comfortable	Generally comfortable	Uncomfortable
Taxpayer awareness	0%	6%	94%
Your / agents' awareness	13%	63%	24%
Taxpayer ability to comply	0%	6%	94%
Your / agents' capacity and resources to support clients	2%	35%	63%
HMRC's capacity and resources to support taxpayers and agents	0%	3%	97%
Availability of suitable software	5%	30%	65%
Cost to clients	1%	7%	92%
Your / agents' ability to charge for your time	2%	15%	83%
Impact on the 'tax gap' (i.e. that MTD for ITSA will reduce it)	2%	12%	86%
Something else (see 'other' below)	3%	14%	83%

 

Q4 - How useful do you think the following elements of MTD for ITSA will be for businesses?

	Very useful	Somewhat useful	Not useful
Keeping records digitally	18%	56%	26%
Digital links between digital records	12%	39%	49%
Quarterly reporting (to ensure timely record keeping)	3%	33%	64%
The quarterly tax estimate following the quarterly update	3%	25%	72%
The End of Period Statement	8%	35%	57%
The Final Declaration (aka the tax return)	34%	43%	23%