Story perspectives

UK's Tax Digital Program Costs Soar to £1.3 Billion

2/4/2026

Summary

Story summary

The UK's Making Tax Digital programme has cost taxpayers £850 million since its 2015 launch and is projected to exceed £1.3 billion.
The National Audit Office has raised concerns about the programme's management, saying long-term costs will exceed savings.
Despite these concerns, the government plans to invest £500 million more in digital services.
From April 2026, landlords and self-employed individuals earning over £50,000 will be required to submit quarterly updates.

History

Historical Context

Launched in 2015, the UK's Making Tax Digital (MTD) initiative aims to modernize tax reporting, with mandatory digital VAT submissions starting in April 2019. However, the program has incurred costs of £850 million, echoing past government IT projects like the NHS's 2002 initiative, which faced similar financial scrutiny. The ongoing £500 million investment underscores the government's commitment to digital transformation despite historical challenges.

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Story summary

The UK's Making Tax Digital programme has cost taxpayers £850 million since its 2015 launch and is projected to exceed £1.3 billion.
The National Audit Office has raised concerns about the programme's management, saying long-term costs will exceed savings.
Despite these concerns, the government plans to invest £500 million more in digital services.
From April 2026, landlords and self-employed individuals earning over £50,000 will be required to submit quarterly updates.

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