Economic Affairs Committee
Making Tax Digital for VAT: Treating Small Businesses Fairly

3rd Report of Session 2017-19 - published 22 November 2018 - HL Paper 229



Summary of conclusions and recommendations

Chapter 1: Introduction

Chapter 2: Development of Making Tax Digital

The 2017 report—key conclusions and recommendations

Policy developments and implementation progress

Chapter 3: HMRC’s preparations for Making Tax Digital for VAT

Understanding business systems and concerns

Pilot programme

Communications and taxpayer support

Assisting the digitally excluded

Chapter 4: The new software market

Software industry

Development of MTD-compliant software

Chapter 5: Taxpayer readiness

Business awareness and planning

Software selection challenges

Progress towards implementation

Long-term strategy for MTD

Chapter 6: The Making Tax Digital penalty and interest regime

The current penalty and interest regime

Consultation process

Draft legislation on penalties

Impact of the penalty reforms

VAT default surcharge and repayment supplement, and proposed interest regime

Taxpayer awareness

Chapter 7: Revisiting the case for Making Tax Digital

HMRC’s estimates of tax gap reduction

Taxpayer costs and benefits

Table 1: One practitioner’s estimate of transition costs of MTD for VAT for their clients

Chapter 8: HMRC’s responsiveness to our 2017 report

The impact of Brexit

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Private roundtable meeting

Appendix 4: Call for evidence

Evidence is published online at and available for inspection at the Parliamentary Archives (020 7219 3074).

Q in footnotes refers to a question in oral evidence

© Parliamentary copyright 2018