HMRC misses digital deadline

HMRC misses its own digital tax deadline

HMRC has failed to meet the deadline for responding to MPs who criticised plans to digitise the tax system. The Public Accounts Committee issued a report criticising the tax office for repeated failures that have caused delays and cost overruns in the new online service. Making Tax Digital, which VAT-registered businesses have used since 2022, will not be extended to self-assessment taxpayers until 2026 - eight years later than planned. The new service is also costing £1bn more than expected. Committee chair Dame Meg Hillier expressed concern that HMRC is "succeeding in making tax difficult" instead of digital. She added that it was "utterly extraordinary" that HMRC had failed to reveal costs of more than £2bn that would be borne by taxpayers when it pushed for investment in the programme. A Treasury source said the deadline had "some flexibility" and had been extended by "a few weeks."