Most UK businesses still not ready for Making Tax Digital

Date:
Wed, 25 Aug 2021 10:43:02 +0000

Description:
Businesses that fail to comply with MTD rules could face heavy penalties.

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Even though the UKs Making Tax Digital ( MTD ) initiative has been mandatory for months now, many firms have still not made the jump and are risking serious fines and penalties for failing to comply.

That's according to a report from automated "Purchase to Pay" provider, Yooz, which polled 200 UK finance leaders and found that four in five businesses
are simply unprepared.

In most cases, finding compatible software seems to be the problem. While a handful (3%) havent even considered adapting to MTDs requirements, 12%
thought about it, but are yet to start. Heres our list of the best tax software right now Weve built a list of the best HR software on the market Check out our list of the best SMB software available

A fifth (21%) started, but are a long way from the finish line, while a third (34%) is almost ready.

The relaxation period intended to give businesses more time to adapt to MTDs requirements ended on April 1, 2021, with businesses needing HMRC-approved software to remain compliant, said Magali Michel, Director of Yooz.

Businesses that fail to comply with MTD rules could face heavy penalties in a time where many are only just keeping their heads above the water
financially. Making Tax Digital is there to keep businesses accountable if
and when something goes wrong, and the transition should be seen as an opportunity to embrace new technology and a better way of working.
Simplifying tax reporting

Making Tax Digital is the UK governments attempt at simplifying, digitizing, and modernizing the tax reporting process. Instead of being required to file one large document every year, businesses will have to keep digital records
of their accounts, using only software approved by the HMRC, every quarter.

For individuals, they are required to send the information directly to HMRC via a personal account.

According to Yooz, finding the right software is one of the main pain points for businesses. The government has promised to provide firms with free, basic software, aside from multiple low-cost options compatible with MTD already on the market.

Furthermore, many programs that UKs organizations are already using should be compatible with MTD. Heres our rundown of the best hybrid working tech out there



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Link to news story: https://www.techradar.com/news/most-uk-businesses-still-not-ready-for-making-t ax-digital/


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