Businesses are unprepared for VAT rule changes. It’s concerning, says adviserDec 08, 2018
The survey of 640 finance directors, carried out by audit, tax and consulting firm RSM, found that 44% of respondents in the region said they were either somewhat or very unprepared for the new Making Tax Digital for VAT rules, while only 1% described themselves as very prepared.
The regional figures reflect the UK-wide concerns. In total, 41% said they were unprepared with only 4% saying they felt very prepared.
- Pictured: Anne Holt, RSM’s VAT partner in East Anglia.
With only a few exemptions, VAT-registered businesses trading over the VAT threshold of £85,000 will be required to keep records in a digital format, ensure that the transfer or exchange of VAT information is digitally linked and submit their VAT return information to HMRC using MTD compatible software.
‘There are still some people who believe that Making Tax Digital has been shelved amid uncertainty surrounding the Brexit outcome but this isn’t the case. The only delay has been for more complex organisations who will have an additional six months to get ready. For everyone else, the 1 April 2019 still applies.
“Affected businesses really need to make the next four months count, to ensure that their software, systems and people are all ready for the change.”