Businesses ‘not ready’ for Making Tax Digital deadline

HMRC MTD Logo

With less than two months to go before the deadline for Making Tax Digital (MTD) for VAT, many businesses are still not prepared, according to a report by software provider, Advanced.

 

The first businesses to be mandated into the government scheme from 1 April 2019 are those that are VAT-registered and have an annual taxable turnover of more than £85,000.

 

In a survey of more than 1,000 business professionals, only 57% said that they will be ready for MTD, 35% admitted they don’t know whether they’ll be ready or not and 8% said they will not be ready for the rollout of MTD for VAT.

 

MTD is part of government plans to make it easier for individuals and businesses to get their tax right. HMRC’s aim is to become one of the most digitally advanced tax administration systems in the world. All of your tax information will be in one place and you will be able to pay tax based on your business activity during the year by uploading and updating your tax account in real time.

 

Those included will be required to keep digital records and file quarterly and year-end returns with HMRC through compatible software.

 

The start date for MTD for VAT depends on where the business's VAT return quarters fall, and those with return quarters ending on 31 March, 30 June, 30 September and 31 December will be among the first to join.

 

As QuickBooks Certified ProAdvisors, Lentells are able to provide you with advice, support and training on ensuring that you are ready for MTD.  

 

Find out more about MTD by watching our MTD Video and accessing our MTD page.

 

We offer QuickBooks Online training at both our Chard and Taunton offices, click here to book a training session.

 

Contact your local Lentells office for more information on MTD for VAT: