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To: Rachel Reeves and HMRC

Unite and STOP Making Tax Digital For Income Tax before April 2026

We call on the Government to cancel the rollout of MTD ITSA in April 2026. Forcing 4.2 million sole traders to submit five returns a year using paid software will increase costs, red tape, and penalties, damaging small businesses, jobs, and the economy. 

Why is this important?

MTD ITSA will impose unfair costs and stress on sole traders, landlords and small businesses. Many will give up trading, reducing services, jobs and tax revenues. Instead of supporting small businesses during a cost-of-living crisis, the Government is adding more red tape. Parliament must debate this policy and scrap it before it destroys livelihoods.

I work with hundreds of sole traders who are terrified about MTD. They already face soaring bills and high taxes, and now they’ll be forced into quarterly submissions and new penalties. Many say they’ll give up their trade rather than deal with the extra burden. These are hardworking people who keep our economy going — they need support, not punishment.

Here are some of the reactions we are getting from business owners:

"I'm finishing up at end of this year definitely"

"That’s me packing it in then"

"Will close my business"

" I am retiring because of the changes in the next few months."

"Looks like I'll close my UTR number an stop sole trading"

Why this is important

  • I’m an accountant: I work directly with hundreds of sole traders, landlords and small business owners. Every week I hear their worries about MTD. Many already say they will quit rather than face the stress and cost.

  • It will force unnecessary costs: Sole traders will have to buy software (often £300+ a year) that they don’t need, just to comply.

  • It means more red tape: Instead of one annual return, they’ll be forced into five submissions every year, massively increasing admin.

  • It creates new penalties: More deadlines means more opportunities to miss them, leading to fines and stress — not more fairness.

  • It risks mistakes: Rushed quarterly reporting will mean more errors, leading to audits and penalties.

  • It hurts the economy: Skilled sole traders — plumbers, electricians, shopkeepers, freelancers — are already saying they’ll give up. That means fewer jobs, less tax revenue, and weaker communities.

  • It punishes the wrong people: While multinationals pay little tax and use loopholes, sole traders — who already pay their fair share — are being treated like cash cows.

  • It comes at the worst time: During a cost-of-living crisis, with high bills and weak growth, the Government is adding more red tape instead of support.

How it will be delivered

This isn’t just an online petition that gets ignored. Once we reach key milestones, we’ll take it directly to Westminster. We’ll work with supportive MPs to hand it in at Parliament, backed by case studies from real sole traders who will be hit hardest. At the same time, we’ll send it to Treasury Ministers and the Business Committee, and push it through the media so no one in Government can pretend they haven’t heard us.

Category

Updates

2025-09-25 22:25:51 +0100

100 signatures reached

2025-09-25 17:32:06 +0100

50 signatures reached

2025-09-25 16:32:33 +0100

25 signatures reached

2025-09-25 16:05:05 +0100

If you haven't watched our video on how we can stop MTD you can find it here:
https://www.youtube.com/watch?v=6Fwapo9nTKI&feature=youtu.be
Lets Stop MTD

2025-09-25 15:37:10 +0100

10 signatures reached