Research and analysis

Making Tax Digital for VAT: Final evaluation

A final evaluation report summarising the main evidence and conclusions of HMRC’s impact evaluation of Making Tax Digital for VAT.

From:
HM Revenue & Customs
Published
27 February 2025

Documents

Making Tax Digital for VAT final evaluation

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Details

Making Tax Digital is designed to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. It requires businesses and individuals to: 

  • keep digital records of business finances including income and expenditure 

  • use software that works with Making Tax Digital 

  • submit updates to HMRC every quarter, bringing the tax system closer to real-time

Making Tax Digital was first introduced for VAT. It became mandatory from April 2019 for VAT registered businesses with a taxable turnover above the VAT registration threshold and then from April 2022 for VAT businesses below this threshold.  

The impact of Making Tax Digital was evaluated via a mix of methodological approaches including social research. This report provides a synthesis of the main findings of previously published evidence, concluding the government’s evaluation of Making Tax Digital for VAT.

Updates to this page

Published 27 February 2025

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