Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the cost of the standard rate of Insurance Premium Tax to (1) listed property homeowners, and (2) the homeowners of properties that are not listed; and what plans they have to (a) exempt, or (b) lower, the rate of Insurance Premium Tax on listed building insurance premiums.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Insurance Premium Tax (IPT) receipts are not broken down by type of insurance; therefore it is not possible to assess the IPT paid by owners of listed and non-listed properties. Insurance pricing is affected by a wide range of factors, and the taxes that insurers pay are just one part of this.
IPT is a broad-based tax which raises important revenue to fund essential public services. The rate of IPT has been unchanged since 2017. The Government keeps all taxes under review and the Chancellor makes decisions at Budgets in the context of the overall public finances.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of Making Tax Digital, if any, on the tax gap attributable to intentional tax evasion; and what plans they have to implement such a scheme directly to address that issue.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Making Tax Digital (MTD) for Income Tax helps taxpayers pay the right amount of tax. It is expected to generate almost £1 billion in additional tax revenue in 2030–31 by encouraging timely and accurate record keeping and reducing that part of the tax gap caused by taxpayer errors and failure to take reasonable care.
HMRC is committed to closing the tax gap further and tackling other types of non-compliance such as tax evasion, tax avoidance, criminal attacks, hidden economy activity, legal interpretation issues, and non-payment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they plan to open the public consultation on the proposed High Value Council Tax Surcharge.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will consult on the High Value Council Tax Surcharge in due course.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the processing time of inheritance tax queries, and what steps they are taking to reduce that waiting time to ensure that inheritance tax can be paid on time.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HM Revenue & Customs (HMRC) is consistently exceeding its service standards of processing over 80% of inheritance tax returns for estates within 15 working days. Once these returns have been processed, most customers will be able to pay any inheritance tax due on time and proceed to apply for probate.
The inheritance tax helpline is also meeting HMRC’s telephony service levels by handling over 85% of customer calls to advisers.
HMRC has also increased numbers deployed to wider inheritance tax work to meet the service standard.
The government announced at Autumn Budget 2024 that it is investing in digitalising the inheritance tax service from 2027-28 to provide a modern, easy-to-use system, making returns and paying tax simpler and quicker.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many individuals were involved in testing Making Tax Digital during the pilot in 2024–25, and how many tax returns they expect to be filed by April 2026.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what support, if any, will be available to taxpayers who are denied exemption from Making Tax Digital but who struggle to comply or be ready in time.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the minimum functionality standards for Making Tax Digital software, and whether that software will be capable of filing (1) quarterly updates, and (2) tax returns.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have plans for taxpayers to pay income tax on a quarterly basis in line with quarterly submissions of Making Tax Digital returns.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that support will be provided to taxpayers who (1) are unsure how Making Tax Digital software can best support their needs, and (2) are unable to file their tax return using the software they have selected as a result of a change in their circumstances.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the practicalities of the December quarterly Making Tax Digital return deadline of 7 February being close to the annual personal tax return deadline.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Taxpayers within Making Tax Digital (MTD) for Income Tax will have one month from the end of each update period to submit their quarterly update. These updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, acting as a snapshot of quarterly trading activity. They will be populated automatically through software and can be submitted easily. This process has been designed to be simple for users and quick to complete.
Although MTD for Income Tax introduces changes to the reporting ofincome and expenditure with quarterly updates, it does not change the frequency or timing of tax payments.
HM Revenue & Customs (HMRC) has published a suite of guidance including interactive guidance to help taxpayers understand if and when they need to use MTD for Income Tax. This will be supplemented by help provided through a taxpayer’s agent or software provider. HMRC is engaging taxpayers affected by the changes directly and through webinars, industry engagement and marketing activity.
HMRC has published guidance about software on its newly revised Software Choices pages, making it easier for taxpayers to choose the rightsoftware for both their budget and their needs. Free and low-cost software options are already listed. Further products will be added to these pages as they become available. Where a taxpayer needs to change software during the tax year, they will need to import their digital records into the new compatible software. HMRC’s Minimum Functionality Standards for MTD software requires developers to build functionality into their products to enable users to export their data.
The 2024/25 Private Beta testing phase of MTD for Income Tax runs to31 January 2026. 226 individuals signed up for the testing. This enabled HMRC to test a range of core user journeys, identify issues and implement improvements. Currently, there are around 3,500 taxpayers signed up for the public testing phase of MTD for Income Tax in the 2025/26 tax year.
Under the requirements specified in HMRC’s Minimum Functionality Standards for Making Tax Digital (MTD) software, using software that is compatible with MTD for Income Tax should enable users to completethe entirety of their obligations within Income Tax Self-Assessment.