Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to HMRC's publication entitled Benefits of Making Tax Digital, last updated on 23 April 2025, what the evidential basis is that Making Tax Digital for Income Tax and Self Assessment will (a) help small businesses manage their tax affairs and (b) support business growth.

Making Tax Digital (MTD) modernises the tax system and will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing helping to reduce errors and making annual tax returns easier.

HMRC has published evaluation of the wider benefits of MTD for VAT, which is already in place for over 2m users. This found users experienced a range of benefits including increased confidence in managing their VAT. Many experienced time savings, estimated at 26–40 hours per business per year freeing up resources for core business activities, and supporting their productivity and growth.

This research can be found at:

www.gov.uk/government/publications/estimating-the-wider-economic-benefit-of-making-tax-digital/making-tax-digital-estimating-the-wider-economic-benefit