It has recently been reported that KPMG have released new statistics that have highlighted that many UK businesses still feel unprepared for the Making Tax Digital (MTD) VAT deadline. We heard something similar from our clients last October but we have been working hard to provide the information and assistance they need.
KPMG research has revealed that 64% of the 1,000 UK businesses who took part in their survey admitted that MTD is “a good idea” but more support needs to be provided ahead of the April deadline.
From 1 April 2019, most VAT-registered businesses above the £85,000 threshold will have to keep digital records going forward, as well as submit their VAT returns using compatible software. For a small percentage of UK businesses in this bracket, their more complex needs have meant that HMRC has extended their deadline until 1 October 2019.
At Randall & Payne, we have been working with our clients who meet the criteria to get them ready and where required helping them to move to a compatible cloud based software package in time.
Six months ahead of the April deadline, we surveyed our clients and found that a massive 84% of respondents felt that there is a lack of available information regarding MTD for VAT. Our survey revealed that although 66% were aware of the upcoming changes, 71% were not using MTD compliant software yet. And of those who weren’t ready, 58% told us that they didn’t know which software was best for their business and didn’t have time to do the research to find out. So when asked if they wanted more information, 79% of respondents gave us the thumbs up!
In response we produced a report which explains more about MTD and gives our recommendation concerning the best cloud accounting software to use – this is available to download.
We are now converting several clients each day to an MTD compliant cloud based software package, with our preference being Xero.
Tricia Hay, Owner Director of First Base Employment Ltd located in Stroud said:
“I have been extremely impressed with the smooth transition over to Xero and all of its capabilities. The assistance we received from Randall & Payne was instrumental in achieving a more joined up accounting function. They listened, understood our frustrations with our existing systems and proposed a solution. Randall & Payne have worked with my team and I to continue to streamline our processes”
MTD is merely the catalyst for change, as Xero has so many other benefits for businesses. A huge advantage is the time saved through not having to rekey data, but also due to the many add-ons you can use such as ReceiptBank. More timely reporting enables businesses to make quicker decisions.
Rob Case, Tax Partner comments:
“MTD for VAT is the first step in a process that will impact upon other taxes with Self Assessment and Corporation Tax in the pipeline. It pays to build systems now to allow for future requirements. Our clients are now harnessing the capabilities of different technology, saving them time in day to day operations allowing them to really focus on their business and their goals.”
If you would like to speak to an expert about MTD or cloud accounting software, please call 01242 776000 or email MTD@randall-payne.co.uk.