4 Feb 2022
What do SMEs need to do to prepare for the introduction of MTD?
Any SMEs that are not already using MTD-compliant software need a plan in place to transition their records to an MTD-ready solution in advance of its introduction.
Is MTD compliance a burden or an investment opportunity, such as an opportunity to utilise cloud-based apps or technology?
MTD is a further compliance burden to SMEs and they will incur additional costs. However, this should also be seen as an opportunity for those that have not already moved onto MTD-compliant software. There are cloud-based bookkeeping packages that can be used to improve the efficiency and accuracy of bookkeeping and to provide up-to-date management information on which to make informed business decisions. There are still a lot of businesses out there that do not have up-to-date management information available.
Is the delayed VAT penalty regime announcement a relief to businesses?
For the well-prepared it should make little difference, but for those who have not yet prepared for MTD, it buys them a little more time.
What are you hearing from clients about MTD compliance?
A lot of businesses rely on their accountants and professional advisors for up-to-date guidance and advice as to the latest requirements. Therefore, it is up to us to advise them and ensure they have a plan in place, as without this, a lot of clients will not even be aware of the implications of MTD. If they have not done so already, they should be talking to their accountants sooner rather than later.
More information on Making Tax Digital is available on the GOV.UK website.