HMRC has introduced a new submission feedback feature as part of the rollout of Making Tax Digital for Income Tax, which comes into force from April 2026 for sole traders and landlords with income over £50,000.
The tool, known as HMRC Assist, is designed to prompt taxpayers to review potential discrepancies before filing, using data already held by HMRC alongside information submitted through digital reporting.
From post-filing checks to real-time data matching
HMRC Assist operates through compatible Making Tax Digital software. It analyses quarterly updates, end-of-period statements and tax return data against information already held by HMRC, including PAYE records and other third-party data sources.
Where inconsistencies or anomalies are identified, the system generates prompts for the taxpayer or their agent to review before submission. These may relate to differences between declared income and HMRC-held data, missing entries or figures that diverge from prior reporting patterns.
This approach reduces the gap between what a taxpayer reports and what HMRC already knows. In practice, it limits the scope for discrepancies to go unnoticed at the point of filing, particularly where HMRC holds corresponding data.
No validation or clearance from HMRC
HMRC Assist does not validate a tax return or confirm that the information submitted is correct. Taxpayers can proceed with filing whether or not they act on the prompts, and the absence of feedback does not indicate that a return is accurate or complete.
The legal position remains unchanged. Responsibility for the return sits with the taxpayer, and the use of HMRC Assist does not provide any form of approval, clearance or agreement by HMRC.
HMRC retains full enquiry and enforcement powers. A return submitted using HMRC Assist may still be subject to compliance checks, and penalties may arise where errors are identified.
Wider MTD compliance system
HMRC Assist forms part of the broader Making Tax Digital framework, which requires digital record-keeping and quarterly reporting. Together, these elements increase both the volume and frequency of data available to HMRC. Submission feedback builds on this by enabling HMRC to compare taxpayer inputs against its own data sources at the point of filing.
The result is a more continuous compliance model. Discrepancies are more likely to be identified earlier in the process, reducing reliance on post-filing enquiries and increasing visibility of potential issues throughout the tax year.
Practical implications for taxpayers and agents
For those entering the MTD regime from April 2026, HMRC Assist is likely to change how returns are prepared and reviewed.
In practice, taxpayers may encounter prompts highlighting:
- mismatches between declared income and HMRC-held data
- missing or incomplete entries within the return
- figures that differ materially from prior submissions
Where discrepancies are identified and supported by HMRC data, ignoring prompts may increase the likelihood of follow-up questions or compliance activity.
For agents, the feature introduces an additional layer of expectation. There is a risk that clients interpret the absence of prompts as confirmation that a return has effectively been checked by HMRC. In practice, no such assurance is given, and professional judgement remains central to the preparation and review process.
What this means ahead of April 2026
As the April 2026 start date approaches, taxpayers and agents will need to ensure that their software is compatible with Making Tax Digital requirements and capable of receiving HMRC Assist feedback.
The introduction of submission feedback does not reduce compliance obligations. Instead, it increases transparency at the point of filing, exposing potential inconsistencies before submission.
For those entering the regime, the key shift is clear. HMRC is no longer relying solely on reviewing returns after they are filed. It is increasingly identifying and surfacing issues during the filing process itself, while leaving full responsibility for accuracy with the taxpayer.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
