Taxation: Electronic Government

(asked on 27th July 2020) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact of the Making Tax Digital programme on the productivity of the self-employed.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 10th August 2020

The Government expects the Making Tax Digital programme to have a positive impact on the productivity of self-employed businesses, as set out in the Financial Secretary to the Treasury’s written ministerial statement on 21 July (HCWS400) and HMRC and HM Treasury’s publication “Building a trusted, modern tax administration” of the same date.

About 1.4 million businesses, some of whom are self-employed, have already joined Making Tax Digital (MTD) for their VAT affairs and many of these are already experiencing productivity gains associated with more digital ways of working, as set out in HMRC’s Evaluation of the MTD for VAT service published in March.

The Enterprise Research Centre (2018) found that for micro-businesses, web-based accounting software delivered productivity increases of over 10%.

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