A survey by Quickbooks has shown that 82% of businesses that are yet to comply are unaware of the impending deadline.
All VAT registered businesses will need to have implemented MTD from 1st April 2022.
Reasons given for not complying are:
Don’t have time (32%)
Not comfortable with technology (30%)
Not knowing what MTD is (29%)
Scared of making errors (26%)
Making tax digital means you will need to keep your records digitally and submit the VAT Return to HMRC using MTD compatible software. You can no longer log into HMRC and enter the figures manually.
Although it may seem daunting, once it is all set up and running, it is easier and will probably save time and reduce the risk of errors.
If you are already filing your VAT return directly through software, you are already complying. However, if you keep spreadsheets or paper records, you will need to get ready for the changes.
Please get in touch if you need any help.