Two-Thirds of UK Business Still Unprepared for MTD
KPMG UK released statistics last month showing that many businesses are not prepared for the April Making Tax Digital (MTD) VAT deadline. “Making Tax Digital is a key part of the government’s plans to make it easier and more effective for individuals and businesses to get their tax right and keep on top of their affairs,” said the report. But while 64% of the 1,000 UK businesses who took part in their survey agreed that MTD is a good idea they said more support was needed.
The regulation, which applies to all VAT-registered businesses with a taxable turnover above the VAT threshold, is part of the government’s ambition to become one of the most digitally advanced tax administrations. It will make it easier for individuals and businesses to get their tax right first time, helping minimise errors.
A report published in January by a financial software vendor backs up these claims. Jon Wrennall, Chief Technology Officer at Advanced, said “Just 57% of organisations in the UK say they will be ready for Making Tax Digital which comes into force from 1st April, according to our latest Trends Survey Report…
“The government is right to implement initiatives that mean organisations need to become more digital but our research suggests that not enough support is being given to help them prepare. However, this responsibility doesn’t fall to the government alone. Suppliers approved by HMRC to support Making Tax Digital need to offer ongoing support too, as well as provide software that is accessible and user-friendly – otherwise businesses will continue to hold back or make errors.”
From 1 April 2019, most VAT-registered businesses above the £85,000 threshold will have to keep digital records going forward, as well as submit their VAT returns using compatible software.| Friday 15 March, 2019