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), how introducing Making Tax Digital for smaller taxpayers will help reduce the tax gap.

Making Tax Digital (MTD) helps reduce the estimated £22 billion tax gap across all taxes caused through error and failure to take reasonable care. It does this by requiring closer-to-real-time digital record keeping, underpinned by quarterly updates and submission of the end-of-year tax return using MTD compatible software. MTD for VAT is currently predicted to deliver cumulative additional revenue (ATR) of over £4 billion by 2029-30 by reducing taxpayer errors.