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Taxation: Electronic Government

Question for Treasury

UIN 220806, tabled on 13 February 2019

To ask the Chancellor of the Exchequer, if he will list the consultations he has had on making tax digital with (a) professional bodies representing SME’s and (b) the ICAEW.

Answered on

18 February 2019

During the consultations on MTD in 2016, we received detailed responses from ICAEW, Federation of Small Businesses, Chartered Institute of Taxation, Low Incomes Tax Reform Group, National Farmers' Union and others. Their contribution was influential in shaping the Making Tax Digital (MTD) service.

The Government and HMRC have since maintained a regular dialogue with businesses, tax agents, professional bodies and software developers throughout the design and delivery of MTD.

The Making Tax Digital Impact Assessment published on 1st December 2017 remains a credible estimate of costs and savings for the VAT businesses that will be mandated from April 2019 and takes account of both software and hardware costs:

HMRC have been working closely with the software industry to create a competitive market. Currently, there are over 160 MTD-compatible software products available, at a range of price points including some free products and others which allow continued use of a spreadsheet.

As set out in the Impact Assessment, very few businesses will incur costs relating to hardware due to MTD. Most businesses will be able to claim any costs for hardware and software against their tax.

Answered by

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