Overview

HMRC Assist is a guidance and feedback tool built into Making Tax Digital for Income Tax (MTDIT).
It helps taxpayers and agents identify possible issues in digital submissions before finalising their tax return — improving accuracy and reducing the risk of errors or penalties.

When HMRC Assist Is Triggered

HMRC Assist messages may appear automatically at five key points in the MTD journey:

StageDescription
Quarter 1 UpdateAfter submitting the first quarterly update
Quarter 2 UpdateAfter submitting the second quarterly update
Quarter 3 UpdateAfter submitting the third quarterly update
Quarter 4 UpdateAfter submitting the fourth quarterly update
Before Final DeclarationBefore completing the annual declaration

At these points, HMRC analyses the customer’s tax data and may provide up to five feedback messages suggesting checks or adjustments.

 How HMRC Assist Works

  1. Customer Provides Update
    The customer or agent submits data (such as income and expenses) using MTD-compatible software like Capium 365.

  2. HMRC Analyses the Data
    HMRC compares the submission with data already held (e.g., third-party income data, platform sales, or historic trends).

  3. HMRC Assist Feedback
    If potential issues are found, HMRC returns nudges — tailored messages offering guidance or checks.
    These may include links to GOV.UK and instructions for resolving discrepancies.

  4. Customer Reviews Feedback
    The user decides whether to make changes. If everything is accurate, no action is required.

  5. Adjustments and Re-submission
    Corrections can be made and resubmitted through Capium 365.

  6. Continue Filing
    Once reviewed, the journey continues through to the Final Declaration.

Example: Sarah’s Fish & Chip Shop

Scenario:
Sarah runs a city-centre takeaway and submits her Quarter 4 MTDIT update via Capium 365.

  • HMRC analyses her data and detects a possible mismatch with online delivery platform income.

  • She receives a feedback message:

HMRC Feedback: Check your turnover
Have you included business income from all sources?
Make sure you have reported all business income, including from any online delivery services.

? Learn more about keeping self-employed business records

Result:
Sarah realises she omitted some online sales, corrects her figures, resubmits her update, and no further issues are identified.
She can then proceed confidently to her final declaration.

Application of Inaccuracy Penalties and HMRC Assist

HMRC’s stance on HMRC Assist in relation to penalties is as follows:

  • Each case is assessed individually. Any penalty depends on the taxpayer’s behaviour and whether reasonable care was taken.

  • HMRC Assist use is not mandatory. HMRC will not routinely consider whether a person used Assist when applying penalties.

  • However, using Assist shows reasonable care. Where a person acts on feedback and ensures their return is accurate, they are less likely to be considered careless.

  • Assist is not a substitute for record-keeping. Taxpayers must still maintain proper books and seek advice where needed.

  • Not using Assist is not automatically careless. Customers will not be penalised simply for not using HMRC Assist if they make an error.

In short: HMRC Assist helps demonstrate reasonable care but doesn’t replace good accounting practice.

Benefits for Capium Accountants

  • Gives clients early insight into potential HMRC issues.

  • Supports accurate digital record-keeping and error prevention.

  • Builds confidence in MTD ITSA submissions.

  • Demonstrates professional due diligence and care to HMRC.