Research and analysis

Evaluating Making Tax Digital’s impact on record keeping behaviour and scope for error among small businesses

This research explored how Making Tax Digital for VAT has changed small businesses’ record-keeping behaviour and whether it has reduced scope for error in VAT submissions.

• From: HM Revenue & Customs
• Published: 19 March 2020

Documents

Evaluating Making Tax Digital’s impact on record keeping behaviour and scope for error among small businesses

Ref: HMRC Research Report 576

PDF, 1.65 MB, 53 pages

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Details

This research provided evidence for how Making Tax Digital (MTD) for VAT has changed how people keep records for VAT purposes, whether these changes have reduced scope for error in VAT submissions, and ultimately, whether Making Tax Digital for VAT can deliver additional tax revenue.

The research explored:

• how businesses have changed their record keeping practices
• how these changes have reduced the scope for error
• whether, as a result of these changes, there is scope for MTD for VAT to deliver additional tax revenue

The research involved 60 in-depth face-to-face interviews with small businesses mandated to join MTD for VAT. Fieldwork was conducted in October and November 2019.

Published 19 March 2020