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Making Tax Digital: lessons from the NAO report

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The recent NAO report on HMRC’s flagship Making Tax Digital for ITSA programme found that the original 2016 plan to introduce MTD by 2020 was unrealistic, with the department failing to assess the scale of work required from the outset. The report is supportive of further digitalisation but believes that significant delivery risks remain. It also highlights an often-overlooked aspect of the programme: data migration from legacy systems to the new enterprise tax management platform. There are clearly lessons to be learned, not least that working in genuine partnership with stakeholders to resolve practical issues is vital if HMRC is to deliver on the revised timescale.
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