Shocking survey results reveal that most businesses are unprepared for Making Tax Digital

Over half of business owners don't understand the HMRC initiative

Figures released from a survey conducted by leading online accountancy firm Mazuma Accountants, have revealed that over half of business owners lack knowledge about what Making Tax Digital is with many more failing to be made aware by their accountant.

Making Tax Digital is a key HMRC initiative set to launch in April 2019, and compulsory for VAT registered companies that are above the turnover threshold of £85k. Despite the importance of the change, few business owners know how it will affect them.

In results released today, the survey revealed that 54.5% of business owners feel that they don't know much about what Making Tax Digital (MTD) is with 69.1% not having been informed of the forthcoming changes by their accountant. A shocking 83.6% of those surveyed have yet to receive any correspondence from HMRC regarding MTD's implementation. 50.9% of business owners and traders have also admitted to worries about how the changes will affect their business.

Making Tax Digital is designed to make the UK tax system run more effectively for tax payers. From 1 April 2019, it requires VAT registered businesses above the threshold of £85k to keep digital records and submit VAT returns using compatible accounting software.

Future implementation of MTD, including for those who pay income and corporation tax, has been placed on hold until April 2020. It's a key government initiative in a bid to cut down on fraudulent behaviour as well as make filing a tax return simpler for most businesses.

According to an ONS survey in March 2018 (https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2018), about 2.67 million businesses are registered for VAT and/or PAYE which means a considerable number of people will be impacted by the changes.

Despite that, there's a considerable lack of knowledge of what it will actually mean for firms, with some accountants failing to keep their clients informed.

Fortunately, online accountancy firms such as Mazuma Accountants are bridging the gap, offering keenly priced services that are complaint with the changes.

Lucy Cohen, Managing Director at Mazuma Accountants, said that ‘’these results are really worrying as they show that accountants across the UK haven’t properly prepared their clients for the tax changing coming in April 2019.''

''With these pivotal changes coming for all business owners, now is the perfect time to consider changing how they conduct their accountancy. A service like ours is a perfect modern alternative to the old days of having to regularly physically deposit large piles of papers and documents to one's accountant.’’

About Mazuma Accountants

Mazuma Accountants is an online accountancy firm with over 12 years of experience. With a promise of hassle-free accountancy, its customers simply send their relevant documents via the Mazuma app with the company doing all the hard work for them. At the forefront of technological advances, the firm is perfectly pivoted towards a new digital future for tax returns and assessments. Services start at £25+ VAT per month.

More details about Mazuma Accountants are available from their website: https://www.mazumamoney.co.uk

Contact

To learn more about the survey results or the services provided by Mazuma Accountants, please contact Lucy Cohen:

Email: lcohen@mazumamoney.co.uk

Twitter: https://twitter.com/LucyMazuma

Website: https://www.mazumamoney.co.uk/


About Mazuma

Mazuma is the UK's first and largest provider of subscription based accountancy services for small and micro businesses. Multi award-winning and with a 13 year trading history, Mazuma was founded by childhood friends Lucy Cohen and Sophie Hughes. After spotting a gap in the market for low cost, hassle-free accountancy services, they have grown the business from a small operation in a spare bedroom to the successful National business that it is today.


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