Saturday, May 30, 2020

Business are unprepared for Making Tax Digital, says Mazuma

More than half of business owners lack knowledge about Making Tax Digital, with many more failing to be made aware of it by their accountant.

That’s the claim made by online accountants Mazuma after a survey. Making Tax Digital is a key HMRC initiative set to launch in April this year, and compulsory for VAT-registered companies above the turnover threshold of £85k. Despite the importance of the change, few business owners know how it will affect them.

The survey revealed that 54.5% of business owners feel that they don’t know much about what Making Tax Digital is, with 69.1% not having been informed of the forthcoming changes by their accountant. 83.6% of those surveyed have yet to receive any correspondence from HMRC regarding MTD’s implementation. 50.9% of business owners and traders have also admitted to worries about how the changes will affect their business.

Making Tax Digital is designed to make the UK tax system run more effectively for tax payers. From 1 April 2019, it requires companies to keep digital records and submit VAT returns using compatible accounting software.

Future implementation of MTD, including for those who pay income and corporation tax, has been placed on hold until April 2020. It’s a key government initiative in a bid to cut down on fraudulent behaviour as well as make filing a tax return simpler for most businesses.

According to an ONS survey in March 2018 about 2.67 million businesses are registered for VAT and/or PAYE, which means a considerable number of people will be impacted by the changes.

Despite that, there’s a considerable lack of knowledge of what it will actually mean for firms, with some accountants failing to keep their clients informed.

Lucy Cohen, MD at Mazuma Accountants, said: “These results are really worrying as they show that accountants across the UK haven’t properly prepared their clients for the tax changing coming in April 2019.”

”With these pivotal changes coming for all business owners, now is the perfect time to consider changing how they conduct their accountancy.”

Help us maintain our standards of journalism

Readers enjoy our news site but keeping our news up to date and authoritative, without charging readers to view the site is a challenge. Especially now with the Corona Virus measures affecting us all, as many clients have been severely affected and are naturally reducing their spend on advertisements. Given this lack of revenue stream we are calling on the generosity of our readers to help us fill that void and enable our journalists to continue delivering the news that you enjoy.

Unlike many other news sites, we don't have annoying pop ups or charge scandalous prices for events. We also produce printed magazines for each title and we make these freely available to read on line too, for your enjoyment. Often, people have asked why we don't make a charge for viewers to read these magazines and news stories but we feel that would adversely affect our readership/advertisers response rate. But with advertising revenues now severely affected we need your help. So, if you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs from just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the current storm and continue in our quest to deliver quality journalism.

We value your readership and your support, as this enables us to continue to provide our regular daily news updates. We've been established over 30 years, during which we've lost count of the numerous recessions and financial meltdowns, and we intend to weather the storms caused by Covid-19. So, every reader contribution, however big or small, is invaluable in helping us to get through this. Please click here to help support your favourite news site/magazine.




Latest news

Channel 4 puts Leeds at centre of digital strategy

Channel 4 has this week unveiled plans for its Leeds-based in-house digital content studio, 4Studio, putting the city at the epicentre of its digital...

Bank cash sees biofuel supplier support NHS

A Barnsley-based biofuel supplier has secured six-figure funding to provide fuel to an NHS hospital during the continuing pandemic. The funding from HSBC UK will...

Pandemic sees business confidence plummet in Yorkshire

Business confidence in Yorkshire fell 12 points during May to a near-record low of -31%, according to the latest ‘Business Barometer’ from Lloyds Bank...

Harris CM begins contract to extend specialist engineering campus

Harris CM has started work on a contract to extend York College’s specialist motor vehicle and engineering campus. The contact will see the Yorkshire construction...

Gelder reveal its new ‘Can Do’ Commercial Division Leadership Team

The Gelder Group merged its Facilities Maintenance and Building and Major Contracts Divisions in 2019 to one ‘Commercial Division’ reporting in to Construction Director...

Safe working guidelines published for British businesses

BSI, the UK’s National Standards Body, has published new safe working guidelines to help businesses manage a safe return to work and reoccupation of...

Related news

Channel 4 puts Leeds at centre of digital strategy

Channel 4 has this week unveiled plans for its Leeds-based in-house digital content studio, 4Studio, putting the city at the epicentre of its digital...

Bank cash sees biofuel supplier support NHS

A Barnsley-based biofuel supplier has secured six-figure funding to provide fuel to an NHS hospital during the continuing pandemic. The funding from HSBC UK will...

Pandemic sees business confidence plummet in Yorkshire

Business confidence in Yorkshire fell 12 points during May to a near-record low of -31%, according to the latest ‘Business Barometer’ from Lloyds Bank...

Harris CM begins contract to extend specialist engineering campus

Harris CM has started work on a contract to extend York College’s specialist motor vehicle and engineering campus. The contact will see the Yorkshire construction...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close