Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answers by Lord Livermore on 8 July (HL8787 and HL8788), what calculations support the statement that Making Tax Digital for Income Tax will generate an expected £1.95 billion of additional tax revenue by 2029–30.

Making Tax Digital (MTD) for Income Tax is expected to generate £1.95 billion in additional tax revenue by 2029–30 by reducing taxpayer errors through digital record-keeping and quarterly updates using MTD-compatible software.

The estimate is the expected reduction in the tax gap due to error and failure to take reasonable care among Self Assessment taxpayers based on the number of taxpayers expected to participate in MTD, and on evidence from evaluation of MTD for VAT.

Additional revenue is also expected from digital prompts to encourage more accurate reporting, with effects estimated using controlled trials.

These calculations have been certified by the Office for Budget Responsibility (OBR).