A recent report has revealed that 41% of small business owners are ‘still unaware’ of Making Tax Digital (MTD).
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 QuickBooks report revealed that over three quarters (76%) of business owners found understanding the legislation to be a ‘challenge’, with sourcing new compliance tools (70%), finding the time to get to know the new initiative (66%) and managing additional work (64%) being cited as other major concerns for small businesses.
The report also revealed that accountants were consulted by 42% of small businesses for advice and support on managing their firm’s finances, and of those who used them, 80% said that they rely on their accountants to prepare their tax calculations and paperwork. QuickBooks has suggested that accountants may play a ‘key role’ in helping businesses and individuals to understand the MTD initiative.
As your accountants, we will be keeping up-to-date on the latest developments in relation to Making Tax Digital.