Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the number of small businesses which will not be able to afford the digital accounting software to enable them to submit digital tax returns; and if he will make a statement.

The Government has committed to ensuring free software is available for those with the simplest affairs in order that businesses can meet the requirements of Making Tax Digital. In addition, many businesses are already using digital record-keeping tools to deal with their tax affairs.

The Government has received a number of representations from individuals, businesses, professional bodies and the software industry about Making Tax Digital. Both I and officials from HM Treasury and HM Revenue and Customs have discussed the reforms with a wide range of professional bodies and advisory groups representing small businesses and the self-employed. Extensive consultation will take place throughout 2016.