Understanding of the specific requirements of Making Tax Digital was lower than general awareness. The latest HMRC research showed that only 51% of businesses aware of Making Tax Digital by the term or concept were able to recollect at least one correct requirement, 12% provided only incorrect responses and a further 37% could not think of any requirements at all (either correctly or incorrectly).

This low level of understanding was a concern despite HMRC communications sending letters and emails to affected parties over the last six months and the proximity of the research to the April 2022 mandation date.