Almost half (41 per cent) of small business decision-makers are ‘unaware’ of Making Tax Digital (MTD), new research reveals.
Meanwhile, 76 per cent are worried that getting to grips with MTD legislation will be ‘a challenge’ for them, 70 per cent are unsure what tools they will need in order to be MTD-compliant and 66 per cent are concerned they will struggle to find the time to get their business up-to-speed.
The frightening figures come less than nine months before many small and medium-sized enterprises (SMEs) will be expected to be fully compliant with ‘MTD for VAT’.
From as soon as April next year, MTD will be rolled-out as mandatory for all VAT-registered SMEs earning above the annual VAT threshold of £85,000.
This means that such businesses will need to be using MTD-friendly software to store and manage their financial information.
It also means that these firms will need to send quarterly digital reports to HM Revenue & Customs (HMRC) for VAT purposes using this software.
Cloud services provider QuickBooks, which carried out the research cited above, said that there was a ‘critical need’ for widespread education about MTD, as the data appears to suggest a worrying lack of understanding among small businesses.
According to the research, almost half (42 per cent) of businesses are planning on turning to their accountants for help over the coming months.
In light of this, businesses are being urged to seek advice sooner rather than later, as MTD is quite literally just around the corner.