News

18 Jan 2019

Time ticking for Making Tax Digital 

With less than four months to go until Making Tax Digital (MTD) comes into force there are concerns that small businesses are not ready for the changes. 

A new survey by online accountancy firm Mazuma Accountants has found that many small businesses are still in the dark when it comes to MTD.

The survey found that: 

• 54% of business owners say they don\'t know much about what Making Tax Digital is
• 69% have not been informed of the forthcoming changes by their accountant
• 84% of those polled have yet to receive any correspondence from HMRC regarding MTD
• 51% of business owners and traders say they are worried about how the changes will affect their business

These figures are frightening considering that from April 2019, all VAT-registered businesses in the UK will have to submit their VAT returns digitally using an approved app.

Not only this, from April 2020, Making Tax Digital will be rolled out to include income and corporation tax.

"These results are really worrying as they show that accountants across the UK haven\'t properly prepared their clients for the tax changes coming in April 2019," said Lucy Cohen, managing director at Mazuma Accountants.

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