Less than 70,000 businesses have registered for Making Tax Digital for VAT, which is scheduled to go live in just one week.
According to HM Revenue & Customs (HMRC), which published the report, some 1.2 million businesses will be required to file VAT returns digitally from 01 April 2019.
However, the latest figures suggest that just over one in 20 businesses have signed up to the scheme with just one week to go before launch.
The number represents less than 3,000 businesses signing up each day.
Urging the business community to start preparing now – including registering for Making Tax Digital for VAT in advance – Theresa Middleton, HMRC’s 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 Making Tax Digital to start preparing now, and to join the thousands of others who are already experiencing the benefits Making Tax Digital has to offer.”
Under the new scheme, almost all businesses earning above the VAT threshold (currently £85,000) will need to keep their records digitally and submit their VAT return using MTD-compatible software.
If you are not sure if you are required to use Making Tax Digital, we have recently published a blog on who and who does not need to keep digital records.
If you need help preparing for Making Tax Digital – including using MTD-compatible software and on-boarding staff, please get in touch with our expert team.
Accountants in London
Latest posts by Accountants in London (see all)
- Couples celebrate Valentine’s Day with £250 tax break - February 14, 2020
- Government launches consultation on plans for new freeports - February 13, 2020
- Businesses could save tax by bringing forward capital purchases - February 12, 2020