Recommendation 32

HMRC told us that it accredits Making Tax Digital software products so that someone selecting that product knows it has been tested against HMRC systems and if they use it correctly it will successfully submit their information. It also provides information about the costs and the functionality within those product to help businesses decide which product to select.78 In answer to our questions around software authorisation and certification, HMRC told us that it currently listed over 500 software products for VAT and explained that whilst it tried to keep the list up to date, it relied on software companies to notify HMRC if software no longer met the programme’s requirements. HMRC expects the number of software products for VAT to reduce but could not tell us whether it plans to introduce further quality measures to ensure software meets its 72 Qq 49–50; PTD0014, Written evidence submitted by APARI Software Ltd, 19 June 2023 73 Q 63 74 PTD0013, Written evidence submitted by the Business Application Software Developers Association, 19 June 2023 75 PTD0007, Written evidence submitted by the Institute of Chartered Accountants England and Wales, 19 June 2023, PTD0014, Written evidence submitted by APARI Software Ltd, 19 June 2023 76 PTD0013, Written evidence submitted by the Business Application Software Developers Association, 19 June 2023 77 Q 63 78 Q73 22 Progress with Making Tax Digital accreditation standards.79 Many customers have said they feel overwhelmed when having to choose software from HMRC’s website for Making Tax Digital for VAT due to the amount available.80 There have been quality issues with some of the software listed on HMRC’s website. In its written evidence to us, Rossmartin Tax Consultancy Limited told us that one of its clients used listed software that allowed them to produce something completely incorrect, and another said their software choice had unexplained features that allowed double income reporting.81 Coachbuilt Cards Ltd also told us t