Most small businesses are 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 or tax agent for advice.

Mike Cherry, chairman of the FSB, said:

“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.”

Contact us for advice on digital tax reporting.

0 comments on “Most small businesses are not ready for MTDAdd yours →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.