New government research has revealed that the overwhelming majority of business owners and landlords remain in the dark about making tax digital (MTD).
2,900 small businesses and landlords were polled by Ipsos Mori on behalf of HMRC and found that 71% were unaware of the requirement to submit quarterly updates to the taxman.
A further 13% have heard of the requirements but don’t know anything about them.
Subject to any further change, MTD will mean that most businesses and the self-employed will access their tax affairs online through digital accounts from 2020. As it stands, VAT-registered businesses will be the first to submit quarterly reports to HMRC – for VAT only – from April 2019.
Though many SMEs are unaware of the specific requirements of MTD, most (70%) are willing to comply with it. 40% said they want guidance on how to prepare for it however and 72% said they would ask an accountant or tax agent for advice. As Chartered Certified Accountants, we are qualified to assist with this matter so please do get in touch if you need any advice.
Mike Cherry, chairman of the Federation of Small Businesses (FSB) commented:
“This new report highlights how much work is needed to enable the small business community to reap the benefits of digital tax reporting. The fact that so many firms don’t even know MTD is on the way is a real concern. Clearly, there needs to be a big push to get the message out there.”
A live MTD pilot scheme is due to start in spring 2018, following a successful small-scale testing phase which got under way at the end of 2017.
If you’re looking for accountants in Berkshire, Surrey or Hampshire and would like more advice about Making Tax Digital and how this is going to affect your business, please feel free to contact PKB and we will be more than happy to help.
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