Would you like to download our mobile app from the App Store?Download
06 Jul 2020
A survey commissioned by HMRC has found that a lack of knowledge amongst UK businesses has contributed to Making Tax Digital for VAT (MTD for VAT) non-compliance.
According to the survey, 16% of firms mandated to sign up to MTD for VAT have so far failed to do so.
Independent researchers working on behalf of HMRC found that whilst non-compliant businesses were keen to comply with MTD for VAT, many had come up against gaps in their knowledge or lacked key pieces of information essential to becoming compliant.
The survey also revealed that time and cost, a lack of urgency and factors outside businesses' control also contributed to MTD for VAT non-compliance.
Commenting on the issue, the Institute of Chartered Accountants in England and Wales (ICAEW) said that HMRC needs to balance the need for more direct MTD communications to those that need prompting with the need for more supportive communication for businesses that have tried to comply with MTD for VAT but have encountered barriers.
As your accountants, we can help you to stay compliant with the MTD for VAT rules. For more information, please contact us.