Making Tax Digital

Information and Communications Technology (ICT)

Record date: 31 March 2026

Whole-life cost: £1.5bn
Published schedule: 01/04/2016 – 31/03/2029
NISTA delivery confidence: AMBER
Senior responsible owner: Jonathan Athow, Suzanne Newton

What the project is for

Making Tax Digital is a major transformation programme delivering whole system change to the administration of VAT and Income Tax Self-Assessment (ITSA) tax regimes that will change how millions of customers manage their taxes and interact with HMRC. MTD supports the digitisation and productivity of UK businesses in the 21st century economy. Its aim is to make it easier for businesses to get their tax right and make the calculation and payment of tax simpler through a transformed modern, digital tax service. It will change customer record keeping behaviour by requiring mandated customers to keep digital records and provide quarterly updates to HMRC. This will improve business record keeping and encourage compliant behaviour, whilst providing businesses with a modern digital experience. The MTD programme will drive digital adoption amongst the UK’s small business population to reduce error in tax and financial administration, supporting productivity and growth. It directly supports the government’s priorities to modernise the tax system, improve customer services, and to close the tax gap by raising billions in additional tax revenue to fund public services.

Departmental delivery commentary

The Amber delivery status recognises that the programme continues to navigate a challenging and complex delivery environment but remains on track to deliver successfully with robust risk mitigation plans in place. Over the last year, MTD continued to meet all key delivery and readiness milestones and a successful testing phase has further demonstrated service and operational readiness. A sustained engagement campaign has resulted in strong agent and customer awareness, and customer sign-ups are in line with forecast trajectories required to realise 26/27 benefits. The MTD Programme Board formally reviewed agreed key readiness criteria in September 2025 and January 2026, confirming the programme remained on track to go live from April 2026 with the first mandated cohort. Independent assurance has been secured through an Internal Audit review and the NISTA Gate 0/4 review. Both concluded that the programme is in a strong readiness position, with all key criteria met for go live.

Schedule

Compared to financial year 24/25-Q4, the project's end-date at 25/26-Q4 remained the same. The programme remains on track to deliver the costed scope as set out in its current business case by March 2029.

Cost

Compared to financial year 24/25-Q4, the project's departmentally agreed Whole Life Cost at 25/26-Q4 (measured in £m) decreased from £1,439.11m to £1,389.46m. This reflects the current scope of the programme, following some minor in year changes.

Benefits

Overall programme benefits increased by £280m, driven by a combination of policy changes announced at Spring Statement and Autumn Budget 2025 (in particular those relating to Penalty Reform), revised customer costs/saving estimates, and refreshed determinants and population statistics.