Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government why the GOV.UK One Login digital app lost its certification under the Digital Identity and Attributes Trust Framework, what is its current certification status and whether it will be ready to manage the Companies House identity verification requirements that come into force on 18 November
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
In April 2025, GOV.UK One Login’s Trust Framework certification was suspended due to a supply chain issue where one third party allowed their certification to lapse. This was not due to any change in GOV.UK One Login’s product, approach, or security. GOV.UK One Login is working to recertify as a priority.
Companies House onboarded to GOV.UK One Login in March 2025. We have been supporting Companies House users since then, and are fully prepared to support the mandatory Companies House requirements that take effect on November 18th. Certification to the Trust Framework is not a necessary condition for this.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how they envisage that the new Companies House identity verification requirements can be satisfied for individuals who are persons with significant control who, because of infirmities or other difficulties, are incapable of using digital apps or visiting a post office or may not possess government-issued photo identity documents of any type.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
Companies House has been listening to feedback from users during the voluntary identity verification period about accessibility and other issues. It is continuing to develop alternative options that will offer more support to individuals who are unable to verify their identities through the standard route. Further guidance will be issued but, in the meantime, Companies House is ensuring that staff are on hand to help users who require assistance via its helpline and by email.
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.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they plan to publish detailed guidance about the interpretation of digital exclusion in the context of Making Tax Digital.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A significant majority of self-employed individuals and landlords have turnover below the VAT threshold, which is currently £90,000. Since 2022, all VAT-registered businesses have been required to use Making Tax Digital (MTD) regardless of whether they are above of below the VAT threshold. The MTD for Income Tax threshold starts at £50,000 from April 2026, reducing to £30,000 in April 2027 and £20,000 in April 2028. This ensures MTD will extend the benefits of digitalisation to many more businesses, helping them to adopt new digital ways of working, improve productivity and growth and get their tax right. This helps address the tax gap for Income Tax Self-Assessment, which is estimated at £8.7bn in 2023-24 and is particularly prevalent amongst the smallest businesses. HMRC has worked extensively with customers, representative bodies and software developers to ensure that MTD works well for businesses of all sizes.
MTD Quarterly updates are not self-assessment tax returns. They are simple summaries of income and expenditure which can be automatically populated through digital records kept by MTD users. HMRC expects quarterly updates to be accurate based on the best available information at the time, but taxpayers do not have to make a declaration of accuracy when these are submitted, and there will not be penalties for inaccurate quarterly updates.
The Government recognises that not everyone is able to interact with HMRC digitally. Taxpayers who are digitally excluded from MTD for Income Tax will be able to apply for an exemption. HMRC will begin operating the exemption process in the coming weeks.
HMRC will publish detailed guidance when the exemption application process opens for digitally excluded taxpayers. This will explain how taxpayers, or someone acting on their behalf, can apply to be exempted from MTD for Income Tax. HMRC will also write to taxpayers to make them aware of the exemptions. There will also be engagement with business and taxpayer representatives to help disseminate this information.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to issue fines and penalties for inaccurate quarterly Making Tax Digital returns.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A significant majority of self-employed individuals and landlords have turnover below the VAT threshold, which is currently £90,000. Since 2022, all VAT-registered businesses have been required to use Making Tax Digital (MTD) regardless of whether they are above of below the VAT threshold. The MTD for Income Tax threshold starts at £50,000 from April 2026, reducing to £30,000 in April 2027 and £20,000 in April 2028. This ensures MTD will extend the benefits of digitalisation to many more businesses, helping them to adopt new digital ways of working, improve productivity and growth and get their tax right. This helps address the tax gap for Income Tax Self-Assessment, which is estimated at £8.7bn in 2023-24 and is particularly prevalent amongst the smallest businesses. HMRC has worked extensively with customers, representative bodies and software developers to ensure that MTD works well for businesses of all sizes.
MTD Quarterly updates are not self-assessment tax returns. They are simple summaries of income and expenditure which can be automatically populated through digital records kept by MTD users. HMRC expects quarterly updates to be accurate based on the best available information at the time, but taxpayers do not have to make a declaration of accuracy when these are submitted, and there will not be penalties for inaccurate quarterly updates.
The Government recognises that not everyone is able to interact with HMRC digitally. Taxpayers who are digitally excluded from MTD for Income Tax will be able to apply for an exemption. HMRC will begin operating the exemption process in the coming weeks.
HMRC will publish detailed guidance when the exemption application process opens for digitally excluded taxpayers. This will explain how taxpayers, or someone acting on their behalf, can apply to be exempted from MTD for Income Tax. HMRC will also write to taxpayers to make them aware of the exemptions. There will also be engagement with business and taxpayer representatives to help disseminate this information.