HMRC's Own Survey Shows Taxpayers Still Struggling With MTD

Charlotte Baroukh

Tax Expert @ Pie

3 min read

HMRC's Administrative Burdens Advisory Board (ABAB) published its annual "Tell ABAB" survey on 15 September 2026, based on responses from 10,195 businesses and agents collected between 15 April and 29 April 2026. Sole traders, freelancers, landlords, and anyone doing self assessment, particularly if you're not yet using MTD compatible software, will want to take note. The survey confirms what a lot of self assessment taxpayers already suspected. HMRC's own guidance is falling short, quarterly updates still feel like a cost and time burden to many, and people are increasingly turning to AI tools for tax answers that aren't always reliable.

Why This Survey Matters To You

That matters because the results aren't HMRC marking its own homework. They're a genuine snapshot of how ordinary taxpayers, including people just like you, are experiencing Making Tax Digital and the wider tax system right now.

And it's exactly why we built Pie Tax the way we did: the right MTD software should take the guesswork out of compliance, not add to it.

If you've found any part of self assessment confusing lately, you're not alone, and it's not down to you. If you want a fuller breakdown of what's changing and when, our guide to Making Tax Digital for Self Assessment covers the basics, or you can see how Pie Tax handles it for you.

Here's what the survey data actually shows, and what it means for how you prepare.

Making Tax Digital Still Feels Like Extra Work For Many

Perceptions of Making Tax Digital have improved slightly since last year, but the underlying picture hasn't changed much. 43% of respondents said keeping digital records would have no significant effect on cost, but when you add up everyone expecting costs to rise even slightly, that's still around 53%.

A similar pattern holds for time, with roughly 48% to 51% expecting MTD to take up more of it.

If you're not VAT registered, the survey found you're more likely than VAT registered businesses to feel a negative impact from Making Tax Digital for Income Tax Self Assessment (ITSA). That's a big chunk of Pie Tax's audience, sole traders and landlords under the VAT threshold, so if this describes you, it's worth understanding why the right software makes a genuine difference to how much time this actually takes. How Pie Works walks through exactly what day-to-day record keeping looks like with an MTD compatible app.

Nearly half of respondents, 49%, are already using MTD compatible accounting software, but the other half are still relying on spreadsheets, paper records, or an accountant to keep them compliant. If you're in that second group, our complete UK guide to Making Tax Digital software is a good place to start.

HMRC's Guidance: Where Taxpayers Are Still Finding Gaps

One of the more striking findings: 72% of people who tried to use GOV.UK guidance to complete a task said it didn't actually help them, up sharply from 57% last year. Respondents pointed to guidance that's too complex, too generic, or simply hard to navigate, and HMRC itself is aware of this feedback and working to improve it.

If you've ever come away from a GOV.UK page still unsure what to do next, that's a widely shared experience, not a reflection on you. In the meantime, good record keeping goes a long way towards making self assessment feel more manageable.

Our guide on why receipts are vital for self assessment claims and our breakdown of what business expenses you can claim as a sole trader both walk through the details clearly, so you've got somewhere to turn alongside HMRC's own resources.

AI Tools Are Popular, But Not Always Reliable

Use of generative AI tools like ChatGPT for tax queries jumped to 32% of respondents, up from just 22% the year before. That's a big shift. But here's the catch: of those who got an answer they thought resolved their query, only 62% later confirmed that answer was actually reliable, a drop of nearly 18 percentage points compared with 2025.

If you've been tempted to ask a chatbot about your self assessment questions, this is worth bearing in mind. General AI tools aren't built to know the specifics of UK tax law, your personal circumstances, or the latest rate changes. A dedicated self assessment app, built specifically around HMRC's rules and updated as legislation changes, is a safer place to get answers you can actually rely on.

People Want Software That Does It All

Perhaps the most encouraging finding for anyone shopping around for tax software: nearly 58% of respondents said they'd rather use an integrated system, one that combines everyday record keeping with tax return submission, than juggle separate tools.

That's exactly the gap a good self assessment app is designed to close, bringing your expenses, income, and quarterly updates together in one place instead of stitching together spreadsheets and separate submission portals.

What To Do Next

You don't need to wait for HMRC's guidance to improve or figure out whether an AI chatbot's answer is trustworthy. If you're still managing your records manually, now's a sensible time to see how much simpler things could be with proper software behind you.

Try Pie for free and see how quickly you can get your records in order. If you want to understand the reasoning behind how it's built. You can also check current plans on the pricing page before you sign up.

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