Members of the Public Accounts Committee (PAC) have warned HMRC that it needs to develop a contingency plan should the digital services tax be extended if the OECD’s global digital tax plans are not introduced.

In the report, MPs said that while the digital services tax raised 30% more than forecast – bringing in £358m from tech firms in 2021-22 – the successful implementation might not last.

HMRC introduced the digital services tax on a temporary basis in April 2020 after the PAC called on the tax authority to address multinationals avoiding UK corporation tax by offshoring profit to other tax jurisdictions.