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 ”