By Ian Lloyd, General Practice Partner at Milsted Langdon

01225 904940

I was shocked to hear earlier this month that new research has found that nearly two-fifths of small business owners have never heard of or made any provisions for Making Tax Digital( MTD).

While it would be fair to say that the Government hasn’ t always done the best job promoting the upcoming changes to the UK’ s tax regime, I was quite taken aback by the figures considering the impact that the new regime will have on most SMEs.

MTD will require VAT registered businesses with turnovers exceeding £ 85,000 to maintain a digital record of their VAT transactions and submit their VAT returns using MTD-compliant software on a quarterly basis from April 2019.

Worryingly nearly 22 per cent are aware of what it is but only plan to file taxes digitally if they are likely to incur financial penalties – of which the majority will if they do not comply. The research, prepared by an

online accountancy provider, also found that more than three-quarters of SME owners found the legislation challenging and difficult to understand.

On top of this 70 per cent were already struggling to find the right tools to help them comply with MTD, including 63 per cent of SMEs who couldn’ t decide which cloud-based accountancy package to use.

The survey also exposed that many businesses would struggle to find the additional time and manage the additional work imposed by MTD.

We have been shouting about MTD to clients and businesses for the last few years and many are already working with us to prepare for the challenge ahead.

Preparing for MTD doesn’ t have to be onerous and the training required to use the new software is straightforward.

But the use of online accounting goes beyond just complying with the new legislation – and this is something

that more businesses need to appreciate.

Utilising cloud accounting software, owners can access their records in real-time on any connected device no matter whether they are at the office or sitting on a beach and work with their accountants whilst on the go.

Businesses have less than 9 months left to prepare for digital taxation so now is not the time to be complacent.

If you aren’ t aware of MTD or can’ t decide which online accountancy package you should use, speak to our team of experts who can help every step of the way. Call 01225 904940 or visit: www. milsted-langdon. co. uk

“ I was quite taken aback by the figures considering the impact that the new regime will have on most SMEs”