A recent report undertaken by cloud-accounting provider QuickBooks suggests a lot of business owners are still in the dark about the legislation, coming into effect April 2019.
Under MTD for VAT, from 1 April 2019 VAT-registered businesses with a turnover above the current VAT registration threshold of £85,000 will be required to file their VAT returns online, using MTD compatible software.
However the report revealed that a substantial number of business owners were struggling to come to terms with MTD and what they need to do, including:
- Some 76% of owners found understanding the legislation to be a challenge
- Other issues include sourcing compliance tools (70%), researching MTD (66%) and managing the additional workload (64%) being cited as major concerns.
- 42% of small businesses have approached their accountants for advice and support on their finances
- 80% said they rely on their accountants to prepare tax calculations and the necessary paperworl
It's highly likely that accountants will play a key role in helping businesses understand their obligations under MTD. As cloud-accounting software becomes more prevalent, taking care of the number-crunching, the role of the accountant will also change.