The Impact of Making Tax Digital (MTD) on Small Business Compliance and an Evaluation of HMRC’s Digital Reform Strategy

Findings show that MTD has halved compliance error rates and improved timely filing. However, micro and small enterprises bear disproportionate financial costs and administrative pressures. Software expenses average £800 annually, with higher costs for manufacturing and tech sectors, and administrative time commitments exceed 25 hours monthly for many SMEs. Correlation analysis indicates that higher turnover firms adapt more easily, while smaller businesses face increased penalties and lower satisfaction.研究结果显示，MTD已将合规错误率减半，并提升了申报及时性。然而，微型与小型企业承担了不成比例的财务成本与行政压力。软件年均开支达800英镑，制造业与科技行业的相关成本更高；多数中小企业每月需投入超过25小时的行政工作时长。相关性分析表明，营收规模更高的企业适配更为顺畅，而规模更小的企业则面临更高的处罚风险与更低的满意度。