We asked HMRC why MTD will increase the burdens on self assessment business taxpayers. It told us the costs MTD will impose on a business will vary depending on the degree to which they already used business accounting software. Those that currently do not use business accounting software will face higher costs but their digitalisation through MTD should increase their productivity as well as their tax compliance. HMRC said MTD would generate £4 billion of additional tax revenue by 2029–30 as a significant number of taxpayers had not been complying. We asked why customers who were already compliant were facing an additional burden from MTD. HMRC explained that “the approach that we and successive 58 Committee of Public Accounts, Progress with Making Tax Digital, Eighteenth Report of Session 2022–23, HC 1333, 24 November 2023, p 3 59 C&AG’s Report, para 3.15 60 C&AG’s Report, para 3.15 61 HM Treasury, Autumn Budget 2024: Fixing the foundations to deliver change, HC 295, October 2024, para 5.21 62 Correspondence from HMRC, 19 March 2025 63 Qq 72–73 64 Correspondence from HMRC, 19 March 2025 18 Governments have adopted is one of a universal drive to encourage small businesses to improve their record–keeping and to improve their use of software.” 65