Small Businesses: VAT

(asked on 2nd May 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact on small businesses of introducing a price cap on software for Making Tax Digital for VAT.


Answered by
Victoria Atkins Portrait
Victoria Atkins
Secretary of State for Health and Social Care
This question was answered on 9th May 2023

HMRC has worked closely with software providers so that businesses should be able to choose a product that suits both their budget and their needs. This includes some products which have been deployed specifically to support different types of sectors.

There are free software products suitable for smaller, simpler businesses and subscription-based Making Tax Digital (MTD) compatible software available, but invariably, costs will differ from business to business, and are influenced by factors including size and complexity of business, degree of digital capability and cost and functionality of software solution employed.

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