1.13 million Businesses still need to sign up to Making Tax Digital

Almost 1.2 million businesses will be affected by Making Tax Digital (MTD), which will make it easier for them to get their tax right. HMRC is urging businesses to get ready now and has written to every business that will be mandated with information on what they should do and how.

Over 70,000 businesses have already signed up to the new service and research in December showed 83 per cent of those familiar with MTD had already started to prepare.

From the beginning of March, HMRC reported just under 30,000 businesses had signed up, a figure which has more than doubled, while the rate of daily signings has risen from 2,000 to 3,000 a day.

Theresa Middleton, Director of the Making Tax Digital for Business Programme, said: “There are over 220 software products for businesses to choose from at a range of prices, including free ones, offering different levels of functionality.

“I’d urge any business affected by MTD to start preparing now, and to join the thousands of others who are already experiencing the benefits MTD has to offer.”

HMRC says it recognises that businesses will require time to become familiar with the new requirements of MTD and will not issue filing or record keeping penalties where businesses are doing their best to comply.

However, sanctions will remain possible in cases of deliberate non-compliance, and in order to safeguard VAT revenue.

Posted in Heather Bright.