MTD for VAT brings in up to an extra £195 million in tax

    Matt Beasty
    19th April 2022
    Home » Categories » Business » MTD for VAT brings in up to an extra £195 million in tax

    Estimates show that up to £195 million in extra tax revenue has been collected via Making Tax Digital for VAT (MTD for VAT), according to research from HMRC.

    The research, conducted by HMRC and peer reviewed by independent academics, showed that in 2019/20 the estimated additional tax revenue was between £185 million to £195 million, compared to a previous estimate of £115 million.

    The tax authority stated that the additional revenue was due to the reduction in error on tax returns.

    The research revealed that, for businesses below the £85,000 turnover threshold, the estimated additional tax revenue that is collected is £19 per business per quarter, which is a 2.2% increase from the average liability estimates for businesses not signed up to MTD.

    For businesses above the threshold, the estimate of the average additional tax revenue is £57 per business per quarter and is a 0.9% increase.

    Internet link: GOV.UK

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Budget 2024 Guide

    The Spring Budget was delivered by the Chancellor Jeremy Hunt on Wednesday 6 March. In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation…

    Budget 2024 Key measures at a glance

    Following Jeremy Hunt’s budget earlier today we have summarised below the key tax changes and announcements he has made: Our full detailed guide on the Budget and our Tax Tables…

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…