A new survey among companies shows a third are still unfamiliar with the new Making Tax Digital regime which comes into force in April 2019.
With just five months to go to the MTD rollout, a survey for accountancy firm Moore Stephens showed 36 per cent of companies were “completely unfamiliar” with the programme, which is being introduced by the Government to digitalise the tax system.
Under Making Tax Digital, businesses will be required to submit information through compatible software, such as QuickBooks, and will no longer be able to use the HMRC portal.
From April 2019, VAT registered businesses, with a turnover above the £85,000 VAT threshold, will need to start submitting their VAT returns under MTD. From 2020, the current plan is that all businesses will be drawn in; all tax returns, not just those for VAT, will need to be submitted quarterly through MTD.
Although April 2019 is now looming, the start for Making Tax Digital regime has already been delayed for several groups, including charities and public sector entities. Others are also calling for a delay.
However, it would seem at this late stage that the plans to roll out MTD from April 2019 are unlikely to be postponed further. Ultimately, all business will be affected and so it is vital to start making preparations.
Making Tax Digital cannot be avoided, so if you run a business now is the time to act, to ensure you and the software you use are fully compliant.
If you have any concerns or queries about Making Tax Digital, how it affects your business and how we can help please get in touch with our tax specialists.
