Only 25 per cent of UK-based small businesses are ready for the Making Tax Digital (MTD) legislation, which comes into effect on 1 April, according to a study from Intuit QuickBooks.
The accounting software company Intuit QuickBooks conducted the research and found only 82 per cent of small businesses had heard of MTD. This study was conducted by Opinum on Intuit’s behalf and sought response from 505 SMBs to be impacted by the regulation.
Of the respondents, 25 per cent were compliant with the legislation, 24 per cent said they were not compliant and 15 per cent claimed they were still keeping paper receipts.
MTD is aimed at making it easier for individuals and businesses with their tax burdens by requiring companies to store their records digitally and submit VAT returns online.
While only a small percentage of companies are actually ready for the deadline, over 50 per cent stated the change will have a positive impact on their business.
There is still a week left, and just over half of those surveyed expected they will be compliant by the end of March. Another 30 per cent are expecting to reach compliance during April, and another 17 per cent are gunning for May.
Intuit QuickBooks VP and UK country manager Chris Evans said, “We understand that for some businesses, the transition to digital will not be without stumbling blocks. However, it presents a huge opportunity to streamline operations, drive efficiencies and simplify tax. It will enhance cashflow management and allow them to get paid faster and access capital to grow, powering prosperity across the UK.”
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