Select Committee · Public Accounts Committee

Progress with making tax digital

Status: Closed Opened: 16 May 2023 Closed: 8 Mar 2024 33 conclusions 1 report

Making Tax Digital (MTD) is HMRC’s flagship transformation programme. It aims to help businesses reduce errors in their tax records, through the use of digital record-keeping and by requiring them to submit quarterly updates using MTD compatible software. HMRC also intends to move processes and tax records onto a modern tax management platform. MTD was …

Clear

Reports

1 report
Title HC No. Published Items Response
Eightieth Report - Progress with Making Tax Digital HC 1333 24 Nov 2023 33 Responded

Recommendations & Conclusions

3 items
30 Conclusion Eightieth Report - Progress with Making… Acknowledged

Repeated delays to Making Tax Digital programme undermine software provider confidence and investment

We asked the Department if it accepted that the changing timeline of the programme undermined those who were developing a business around the requirements of the programme. HMRC recognised that the repeated delays to the programme’s delivery had been unwelcome and had knocked confidence in the programme among those in …

Government response. The government agrees with the conclusion, recognising the importance of certainty for MTD delivery partners and customers. It highlights the December 2022 announcement of the phased MTD for ITSA timeline, ongoing detailed planning and roadmap sharing, and continued engagement on …
HM Treasury
31 Conclusion Eightieth Report - Progress with Making… Acknowledged

HMRC concern over MTD delays limiting software providers and creating taxpayer barriers

We asked HMRC if it was concerned repeated delays would limit the number of software providers willing to develop products for taxpayers, and whether this could create a barrier for taxpayers using the programme. It told us it was worried about this, and it recognised that the announcements in December …

Government response. The government agrees with the conclusion, acknowledging the need for certainty and assurance for MTD delivery partners and customers. It outlines the December 2022 announcement of the phased MTD for ITSA timeline, ongoing detailed planning and roadmap sharing, and continuous …
HM Treasury
33 Conclusion Eightieth Report - Progress with Making… Acknowledged

HMRC needs robust plan to communicate Making Tax Digital changes to taxpayers

As well as having significant parts left to design and test and have the software development industry buy into and build products, HMRC also needs to plan how it will communicate these changes to its customers. HMRC told us that it had a very strong communication plan and it was …

Government response. The government agrees with the conclusion, recognising the importance of certainty in the MTD delivery plan. It outlines ongoing efforts, including sharing detailed plans and a roadmap with partners, seeking feedback on communication plans, and short-term focus on beta testing, …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
19 Jun 2023 Jim Harra CB · HM Revenue and Customs, Jonathan Athow · HMRC, Jo Rowland · HM Revenue and Customs View ↗

Correspondence

1 letter
DateDirectionTitle
3 Jul 2023 Correspondence from Jim Harra, Permanent Secretary and Chief Executive, HM Reve…