AAT Comment: MTD for VAT a huge challenge or a wonderful catalyst for growth?

AAT_Team

This month, most businesses above the £85,000 VAT threshold would have filed their tax digitally, using HMRC compatible accounting software.

Making Tax Digital (MTD) is part of the Government’s plan to create a digital Britain. MTD for VAT will solve the issue of costly filing mistakes and enable HMRC to better track tax payments.

“Despite impacting 1.1 million small businesses in the UK today, our research shows that a third of UK SMEs are not aware of MTD,” says Damon Anderson, Director Partner and Product UK & EMEA at Xero. “What many business owners also don’t know is if they fail to comply, they will be faced with fines.”

[Full article.]