UK Tax Office Research Shows Benefits of Digitizing Tax Program

The UK tax office’s project aimed at helping businesses digitize value-added tax activities is leading to more up-to-date business oversight of finances and faster completion of tax returns.

Benefits from the Making Tax Digital project included 34% of businesses using the project’s software for other purposes, such as invoicing operations, and 58% completing VAT returns faster, according to a research report commissioned by His Majesty’s Revenue and Customs that published Thursday.

The Making Tax Digital project is a key part of the UK’s tax administration strategy to reduce the tax gap. The project started its first phase in 2019, ...