With less than a month to go until the changes to the MTD for VAT system, 82% of eligible businesses that are yet to comply are still unaware of the deadline.
A survey by QuickBooks found that less than a third of UK businesses know what they need to do to become MTD compliant and are confident of meeting the deadline.
VAT registered businesses with a turnover above £85k were required to follow the rules from April 2019. From April 2022, MTD will also apply to VAT registered businesses with turnover below £85k. The Quickbooks survey revealed the following key reasons why businesses are putting off their efforts to comply:
- Don’t have time (32%)
- Being uncomfortable with the technology involved (30%)
- Not knowing what MTD is (29%)
- Needing to talk to an expert first (28%)
- Being scared to make errors (26%)
Under MTD for VAT rules, businesses are required to keep digital records and use software to submit their VAT returns.
If you would like any help with MTD or VAT, please call Ellis & Co on 01244 343 504.