Report reveals 40% of SMEs are unaware of Making Tax Digital Article Image

Report reveals 40% of SMEs are unaware of Making Tax Digital

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.

For more information on MTD you can read our resource centre, or get in touch with one of our team who will be happy to go over the requirements.

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