Have the warnings for Making Tax Digital (MTD) been falling on deaf ears? Or has there not been enough information about the government’s plan to turn all tax submissions digital?
This remains up for debate, but there can be no questioning that thousands of businesses are nowhere near ready to make the move to MTD – and now the British Chambers of Commerce (BCC) are taking action.
As the national representative body of more than 50 accredited Chambers of Commerce across the UK, the BCC is campaigning for HMRC to halt the MTD roll-out until the beginning of the 2020/21 financial year.
This has left some taxpayers a little confused, and many are asking whether they even need to prepare for MTD anymore.
Here’s what you need to know…
What are the BCC asking for?
After launching a research project in collaboration with software company Avalara, the BCC gathered some alarming statistics with regards to British businesses and MTD.
According to their findings, just two-thirds of companies are somewhat familiar with MTD (in some cases having just heard the name), whereas almost one-quarter have never even heard of it.
In light of the results, the BCC is requesting an MTD adjournment – asking the government to wait an extra 12 months before making its initiative a legal requirement for businesses.
The BCC argue that a roll-out delay will give HMRC an opportunity to improve their communication with businesses, setting out a clearer set of requirements that everyone can understand in order to feel prepared in 2020/21.
What’s the best course of action?
Don’t leave it to chance.
In all likelihood, there probably won’t be an MTD roll-out delay – despite the fact the BCC is getting behind stressed-out business owners and asking the government to give people more time.
It’s also worth bearing in mind that even if MTD is deferred, it isn’t ever going to completely go away. The move towards all-digital tax submissions is inevitable, so you’ll need to prepare at some point… and there’s no time like the present.
Instead of sitting tight and keeping your fingers crossed for an MTD postponement, seize the opportunity and get your accounts in order today. This way, you’re all set for every eventuality – with no risk of suffering a penalty for non-compliance.
Talk about MTD with Liquid Accounts
As one of the first cloud accounting software providers to support MTD for VAT filing requirements, Liquid are the best team to turn to when it comes to digitalising your books and accounts for the taxman.
Our team can offer you all the support you need during the process, answering your questions and keeping you up to date about MTD developments as and when they occur.
Get in touch today on 0161 413 5050 or firstname.lastname@example.org for more information.