Eightieth Report - Progress with Making Tax Digital

The government disagreed with the recommendation, stating it is not possible to robustly estimate the separate effects of frequent vs. digital submissions. They have instead applied MTD for VAT evaluation findings to MTD for ITSA, expecting a 15% tax gap reduction.

The government disagreed with the recommendation, explaining that while a priority is to make tax easy, they already engage extensively with taxpayer representatives (ABAB, expert panel, Customer Experience Committee) and conduct research to understand customer needs, publishing findings in TIINs.

The government disagrees with the committee’s implicit finding of £1.75 billion in missed tax revenue due to MTD for Self-Assessment delays, providing its own OBR-certified benefit forecasts for MTD for ITSA.

The government rejects the committee's observation, stating that it's not possible to robustly disaggregate the effects of MTD components, and presents evidence from MTD for VAT and OBR-certified MTD for ITSA benefits showing significant tax revenue reduction from error and failure to take reasonable care, expecting £780 million by 2028-29.

The government rejects the committee's observation regarding additional burdens, stating its priority to make tax easy must balance with raising revenue and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.

The government rejects the committee's observation regarding burdens on small businesses, asserting its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It describes ongoing engagement with taxpayer representatives and recent enhancements to policy and service delivery processes.

The government rejects the committee's observation regarding the aim of quarterly updates, reiterating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It details continuous engagement with taxpayer representatives and improved internal processes for considering taxpayer experience.

The government rejects the committee's observation regarding concerns for vulnerable taxpayers and support, stating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It references ongoing engagement with taxpayer representatives and enhanced policy processes that consider customer experience.

The government rejects the committee's observation on ensuring compliance, stating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.

The government rejects the committee's observation on stakeholder support for digitalization and concerns about deliverability, stating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.

The government rejects the committee's observation regarding effective collaboration with tax professionals, stating its priority to make tax easy must balance with raising revenue and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.

The government rejects the committee's observation on HMRC's plans for working with stakeholders, stating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.

The government rejects the committee's observation regarding ongoing stakeholder concerns about implementation and support for vulnerable taxpayers, stating its priority is to make tax easy while balancing revenue raising and tackling the tax gap. It highlights regular engagement with taxpayer representatives and enhanced policy processes to consider taxpayer experience.