Helen Goodman – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Helen Goodman on 2016-03-01.

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the technological capacity of small businesses to move to a quarterly digital tax reporting system by 2020.

Mr David Gauke

In the context of the Making Tax Digital programme, HM Revenue and Customs (HMRC) has developed a strong understanding of the technological capability of small businesses.

The vast majority of small businesses are already engaging with HMRC online. For example, 95% of VAT returns and 98% of Corporation Tax returns are submitted online, while a record 89% of self-assessment returns were submitted online in January 2016. In addition, many are already using digital tools to deal with their tax affairs.

HMRC has additional research underway to further explore digital capability issues. The Department recognises that some people will need support to transition to dealing with their tax affairs digitally and will help those who may struggle to adapt.

The Government will consult on the details of the Making Tax Digital proposals throughout 2016, including digital capability issues.