Fife businesses still not getting the Making Tax Digital message
Although the HMRC’s deadline for Making Tax Digital was 1st April, Glenrothes accountant Lisa Bray, Director of Eden Fyfe Accounts, predicts that many Fife businesses are following the UK trend and have yet to register. Across the UK HMRC has had to waive fines for non-compliance this year as over 120,000 businesses have not even registered.
While it is difficult to determine how many Fife businesses are affected, the level of enquiries reaching her company suggests that many small businesses are still confused about the mandatory Making Tax Digital system.
She said: “Outwith our own business, it’s clear that many small businesses still have not got the message. And those who have heard of it are not happy about it. The recent YouGov poll showed that 12% of businesses didn’t know anything about it, 57% of bosses in micro businesses felt unprepared for the change, and 28% felt it was going to cost them a lot more to deal with their tax than before.”
Small businesses with a turnover above the £85,000 VAT threshold have to register for Making Tax Digital for VAT and use HMRC approved accounting software.
Lisa Bray said: “Dealing with the software requirements for the new system is definitely a stumbling block for many. They may have to invest in new software and pay for training. For small businesses book-keeping is often a chore and done at the last minute. The new HMRC requirements will, for some, feel like a burden on top of running a business.
“It’s important to be accurate and timely so finding technology that’s user friendly, rather than making life more complicated, can help. We have introduced an app which photographs invoices and receipts as part of a simple book-keeping system and this is proving popular with people who don’t want to invest in special software and training.”