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Taxation: Electronic Government

Question for Treasury

UIN HL589, tabled on 25 May 2021

To ask Her Majesty's Government what steps they are taking to increase awareness of the impact of 'Making Tax Digital' on tax.

Answered on

8 June 2021

The Government is committed to ensuring that businesses within scope of Making Tax Digital (MTD) understand the impact it will have on their business. All taxpayers within scope of MTD will receive direct contact from HMRC in advance of mandation outlining the changes and explaining how to comply.

HMRC engage extensively with taxpayers, agents, and representative bodies to raise awareness of MTD through stakeholder forums, public events, webinars, social media, and publishing information and guidance on GOV.UK.

MTD does not change the amount of tax a business has to pay, but rather when and how it reports tax information to HMRC. Two independent research studies commissioned by HMRC have found that small businesses that had joined MTD for VAT with fully integrated software reported spending less time on their tax and making fewer errors.

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