Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the cost of (a) quarterly tax returns and (b) mandatory use of Making Tax Digital for Income Tax software to small and medium enterprises.

Making Tax Digital (MTD) for Income Tax quarterly updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, populated automatically through software and easily submitted. The latest published assessment of MTD for Income Tax impacts is available at:

www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords

The government has worked with the software industry to ensure a wide range of software choices to suit varying needs and budgets including free and low-cost software options. HMRC's software choices page can be found here:

www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax#software-available-now

Quarterly updates will support taxpayers in getting get their tax right and allow customers to call-up estimates of their emerging liability on-demand throughout the tax year. This helps ensure everyone pays the right amount of tax at the right time