Qualitatively assessing the impact of Making Tax Digital
Research exploring the ongoing customer impact of record-keeping behaviour change in response to Making Tax Digital for VAT in the second year of mandation.
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The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs (HMRC).
Qualitative research into the costs and benefits of Making Tax Digital for VAT conducted in the first year of mandation found that businesses were still adapting to the change. Benefits were experienced by businesses, but many felt they needed more time before they would realise them fully.
HMRC commissioned Kantar Public to undertake this further piece of qualitative research to explore the ongoing customer impact of record-keeping behaviour change in response to Making Tax Digital for VAT. The research sought to understand:
- the ongoing costs and benefits experienced by businesses
- the scope for error
- whether/how these costs and benefits vary by record-keeping approach taken
The research involved 60 in-depth phone interviews with small businesses that had made the change to Making Tax Digital for VAT following mandation in 2019. Fieldwork took place between March and July 2021.