New digital tax requirements are leaving businesses confused
Many businesses are not aware of new tax requirements, a new survey suggests, despite a promotional initiative launched by HM Revenue and Customs (HMRC).
The survey of 1073 businesses found widespread ignorance of the “Making Tax Digital” (MTD) programme, with 24% of firms claiming never to have heard of it and 66% having only a superficial awareness of what was required.
Just 10% of survey respondents said that they know “a lot of details” about the switch to the digitised tax system. The new rules will require VAT registered firms to have MTD-compatible software in place that can create a VAT return and connect to HMRC systems via an Application Programming Interface (API).
It is a much more complex process for businesses than the current online system of manual completion of VAT returns. Businesses are reporting low levels of satisfaction and support from HMRC.