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 announced in 2015 and is intended to cover VAT, income tax for self-employed people and landlords and corporation tax - but has so far only been introduced for VAT. The Public Accounts Committee has previously reported on delays and problems in the programme, and in December 2022 HMRC announced changes to re-phase it.
Based on an investigation into MTD by the National Audit Office the Committee will question Jim Harra, First Permanent Secretary and Chief Executive at HMRC on the progress towards MTD and whether the latest plans provide confidence that the programme will deliver value for money.
In particular this inquiry will cover:
- HMRC’s original vision and plans
- progress made before re-phasing the programme at the end of 2022
- the realism of HMRC’s latest plans for the programme.
If you have evidence on these issues please submit it here by 23:59 on Wednesday 7 June.
Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere.