Award-winning accountancy firm Milsted Langdon is warning VAT registered businesses that they may have only months left to get ready for the latest Making Tax Digital (MTD) requirements.
As the Government prepares to roll out the next phase of its digital tax plan, the firm says that the new rule change from April 2022 will mean that even the smallest VAT registered business will need to comply with the quarterly digital recording and reporting of VAT.
Hundreds and thousands of VAT registered businesses above the VAT threshold of £85,000 are already having to comply with the MTD rules, but this next stage in HM Revenue & Customs (HMRC) digital tax plans is likely to catch out many more.
The firm, which has offices across the South West, is particularly concerned that many small businesses may not have the knowledge, resources or technology to record and submit VAT information to the tax authority
“The initial phase of MTD for VAT has been challenging, even for some larger businesses,” said Sarah Jenkins (pictured on main page), Audit and General Practice Partner at Milsted Langdon. “There are concerns that smaller businesses may struggle with this new requirement later this year if they don’t give themselves enough time to prepare.”
“We have already helped lots of businesses migrate to the latest cloud accounting technology in preparation for MTD, but we are aware that many more companies in the South West aren’t ready.
“Failing to comply with these new rules could lead to a fine and further investigation by HMRC and so organisations affected by this rule change should act now.”
The Government has said that around a quarter of VAT registered businesses below the VAT threshold have already voluntarily chosen to join MTD, but Milsted Langdon said that this means many more still need to prepare.
It is offering its expertise and support to a wide range of small businesses, across a wide range of sectors throughout the UK.
“The businesses that we have helped get ready for MTD have said that early action was key to helping them prepare for this significant change,” added Sarah
“They have not only been happy with the speed that software was implemented within their business but they have also been impressed with the other benefits afforded to them by using HMRC compliant cloud accounting platforms, including how it is helped them save time, money and given them a greater insight into their finances and operations.”
If you are struggling to prepare for MTD for VAT, please visit www.milstedlangdon.co.uk.