Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of Making Tax Digital; and what steps she is taking to improve customer service for businesses.

HMRC’s published evaluation of Making Tax Digital (MTD) for VAT, introduced in 2019, shows that MTD is effective with additional tax revenue raised in line with HMRC’s original forecast. MTD reduces error and provides wider benefits, including time saved, increased tax confidence, greater accuracy and improved business operations.

The Government expects that businesses and landlords using MTD for Income Tax from April 2026 will experience similar benefits.

HMRC’s move towards being a digital first tax administration system supports the commitment to better customer service. Improved online digital services will handle routine functions and enquiries, supported by accessible online content such as recorded webinars and YouTube videos.

This will free up phone lines to support customers with more complex queries.