Searches for information on Making Tax Digital have surged in recent months, suggesting that HMRC may be struggling to provide the required support to self-employed businesses, UK-based financial firm RIFT has revealed.
New analysis by RIFT of both Making Tax Digital search volumes and HMRC response levels demonstrates that whilst many self-employed business owners may be attempting to prepare aptly, they aren’t receiving the support they need from HMRC.
In April 2026, Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) will become mandatory for self-employed individuals and landlords in the UK earning over £50,000 annually. This new system requires digital record-keeping and HMRC-approved software to submit quarterly updates of income and expenses, with a final digital declaration still required by 31 January following the end of the tax year.
While the move to digital reporting aims to improve accuracy and provide real-time visibility of tax obligations, it introduces new challenges. Businesses will need to invest in compatible software and may face additional administrative or accountancy costs. The shift also brings a new penalty system: missing quarterly deadlines could lead to fines and interest charges, adding pressure on businesses to stay organised throughout the year.
The new analysis shows that there has been a huge surge in search volumes by those looking for information on how to get compliant ahead of next year’s deadline. The numbers show that in Q3 of last year, an average of 8,760 searches for ‘Making Tax Digital’ were made each month.
This remained largely consistent at 8,386 per month during Q4, however, this figure climbed to 19,819 on average per month during the first three months of this year, largely driven by a spike of 34,017 searches in March.
So far in Q2 (April and May) of this year, searches for information on the subject of ‘Making Tax Digital’ have surged again, this time to an average of 43,648 searches per month.
Is HMRC falling short?
Additional analysis of Gov data on HMRC response times, conducted by RIFT, suggests that this increased search for information has been driven by an increased difficulty in making contact with HMRC.
The analysis shows that in January of this year, just 82.3 per cent of all calls to HMRC were handled, down from a recent peak of 90.2 per cent in October 2024. This figure fell again in February of this year to just 80.9 per cent – the lowest level in the last six months.
At the same time, some 245,952 calls were not handled by HMRC in October of last year, with this figure falling to 213,747 in December. So far this year, 599,057 calls went unhandled in January, with 516,629 not handled in February.
Bradley Post, MD of RIFT, commented: “April 2026 may seem like a while away yet, but it’s clear that the changes on the horizon as a result of Making Tax Digital are already at the forefront of many self-employed business owners.
“Unfortunately, HMRC simply isn’t equipped to facilitate the surge in demand for its guidance and advice ahead of such a notable change, and it’s clear that many are having to seek their own answers via the internet.
“For those in fear of being penalised through no fault of their own, alternative help is available. Working closely with an accountant or tax specialist ahead of the April 2026 deadline can make the transition smoother and help avoid penalties and we strongly advise that you do just this if you’re failing to get the answers you need from HMRC themselves.”
