HMRC launched its flagship transformation programme Making Tax Digital (MTD) in 2015–16. MTD requires business taxpayers to use third–party software to keep and submit quarterly digital tax records with the aim of: reducing the amount of tax lost from taxpayers making avoidable or careless errors; helping businesses better understand their tax position; and reducing the burden of submitting tax returns.53 HMRC completed the roll–out of MTD for VAT in 2022. HMRC estimated that MTD had increased net costs for VAT traders by around £300 million over the period 2019–20 to 2023–24.54 It also estimated that tax revenue from VAT traders increased by almost £200 million in 2019–20 (at that point not all VAT traders were using MTD).55 There is no strong evidence to date to suggest productivity improvements for most VAT traders following the introduction of MTD.56 HMRC consider that the productivity of small businesses will benefit more generally from the process of digitalisation.57