Most small businesses not ready for MTD

The overwhelming majority of business owners remain in the dark over making tax digital (MTD), according to government research.

Ipsos Mori polled 2,900 small businesses and landlords for HMRC and found that 71% were unaware of the requirement to submit quarterly updates from 2020.

A further 13% had heard of the requirements but knew nothing about them.

MTD will mean most businesses and taxpayers access their tax affairs online through digital accounts from 2020.

VAT-registered companies with annual turnover of more than £85,000 will be the first to submit quarterly reports to HMRC - for VAT only - from April 2019.

Though many small businesses and landlords were unaware of the specific requirements of MTD, the majority (70%) were willing to comply with it.

40% said they wanted guidance on how to prepare for MTD, and 72% said they would ask an accountant for advice.

Be prepared

Although these changes will not be introduced for a few years it’s a good idea to get systems in place sooner rather than later, saving you time and stress further down the line.

Lentells are already working with an increasing number of our clients to put in place digital record-keeping systems through moving to a Cloud based system. As QuickBooks Platinum ProAdvisors we are in a strong position to offer topical and relevant advice to all our clients, as well as ongoing training as the MTD deadlines approach.

Contact your local Lentells office for an informal discussion on preparing for MTD and moving your accounts to the Cloud.