Nearly two thirds of technology, media and telecommunication (TMT) businesses have said they need more preparing for the Making Tax Digital (MRD) VAT deadline of 1 April.
Almost two-thirds (62%) of businesses said they think it's a great idea, but say they haven't had the support they need to make sure their business is compliant with the government's new legislation, according to KPMG.
The new law stipulates that any business taking revenues above 85,000 must keep digital records of their earnings and submit their VAT returns using compatible software. Although it's only a soft launch initially and it's unlikely businesses will be fined if they're not properly set up, from March 2020, it will become a legal requirement for businesses to have a digital paper-trail of all VAT transactions.
"With just over a month to go until the deadline, it's worrying to see that almost two-thirds of businesses say that they need more support and are still in the process of working out what they need to do," said Ian West, head of TMT at KPMG UK.
"This could potentially be both costly and time-consuming, depending on the changes that need to be made."
KPMG asked more than 200 TMT firms about their MTD plans and although almost a fifth of respondents said this new digital way of filing tax returns won't benefit their business, 15% were supportive and said they could see how it would be beneficial. Just four percent claimed it would damage their business.
"Although 98% of VAT registered businesses already file VAT returns electronically, Making Tax Digital will involve significant changes to their existing processes," West added.
"For example, keeping digital records, maintaining a digital audit trail of all business transactions, and implementing new software to submit their VAT returns digitally."
-
What is polymorphic malware?Explainer Polymorphic malware constantly changes its code to avoid detection, making it a top cybersecurity threat that demands advanced, behavior-based defenses
-
Outgoing Kaseya CEO teases "this is just the beginning" for the companyOpinion We spoke to Fred Voccola who remains a key figurehead at the firm as it enters its next chapter...
-
How to empower employees to accelerate emissions reductionin depth With ICT accounting for as much as 3% of global carbon emissions, the same as aviation, the industry needs to increase emissions reduction
-
Worldwide IT spending to grow 4.3% in 2023, with no significant AI impactNews Spending patterns have changed as companies take an inward focus
-
Report: Female tech workers disproportionately affected by industry layoffsNews Layoffs continue to strike companies throughout the tech industry, with data showing females in both the UK and US are bearing the brunt of them more so than males
-
How can small businesses cope with inflation?Tutorial With high inflation increasing the cost of doing business, how can small businesses weather the storm?
-
How to deal with inflation while undergoing digital transformationIn-depth How can organizations stave off inflation while attempting to grow by digitally transforming their businesses?
-
How businesses can use technology to fight inflation
TUTORIAL While technology can’t provide all the answers to fight rising inflation, it can help ease the pain on businesses in the long term
-
Embattled WANdisco to cut 30% of workforce amid fraud scandalNews The layoffs follow the shock resignation of the company’s CEO and CFO in early April
-
Some Tech Nation programs could continue after Founders Forum acquisitionNews The acquisition brings to a close a months-long saga over what the future holds for Tech Nation initiatives
