Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the preparedness of small businesses for the ‘Making Tax Digital’ reforms, and whether additional support is needed before the reforms come into effect.

Making Tax Digital (MTD) modernises the tax system, helps businesses to keep on top of their tax affairs and supports wider productivity.

Research measuring levels of understanding and readiness is underway and will be published once it is finalised. The Government is actively undertaking a range of activities to ensure that those needing to use MTD for Income Tax are ready and able to do so successfully from April 2026. A communications campaign is underway, raising customer awareness of MTD for Income Tax and encouraging agents and customers to sign up for testing.

HMRC are supporting customers and agents with a suite of guidance products, direct communications, webinars, live events and social media activity to help them to prepare.