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Small Businesses: Taxation

Asked by Charlie MaynardLiberal DemocratTreasuryTabled Answered 4 September 2026UIN 19275

The question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of Making Tax Digital on small businesses.

Answered by Treasury

The government has worked with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for Income Tax works well for businesses of all types and sizes.

MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.

The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low-cost and free software, supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools.

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