NEWS

Are you prepared for MTD

According to new research for HMRC 70% of businesses are still unaware of the forthcoming roll-out of Making Tax Digital ((MTD).  A further 13% had heard of the requirements but knew nothing about them.

The government has extended its original timescale for MTD so that most businesses and taxpayers access their tax affairs online through digital accounts from 2020.  VAT-registered companies with annual turnover of more than £85,000 will be the first to submit quarterly reports for VAT only from April 2019.

Ipsos Mori polled 2,900 small businesses and landlords and conducted in-depth interviews with 40 business owners.  The findings show that 20% of small firms and landlords are not are not using digital tax software due to a lack of confidence with technology.

The survey also found:

74% sought help with their accounts and tax from an external paid accountant

Only 21 manage their tax affairs themselves.

Most use spreadsheets or paper to keep financial records – just 26% use software

One third say they expect making quarterly tax returns will be difficult

One in five says poor broadband will be a barrier to complying

72% said they would ask an accountant for advice and support about MTD

You can read the full report here

19/12/2017