VAT registered businesses have only months left to get ready for the latest Making Tax Digital (MTD) requirements, as the Government rolls out the next phase of its digital tax plan.
Award-winning London accountants Grunberg & Co say that the new rule change from April 2022 will mean that even the smallest VAT registered business will need to comply with this new digital tax regime for the recording and reporting VAT.
Already, hundreds and thousands of VAT registered businesses above the VAT threshold of £85,000 are having to comply with the MTD rules, which require the quarterly recording and submission of VAT information to HM Revenue & Customs using approved software.
This has been a challenge for many businesses, including larger companies and groups, so Grunberg & Co is concerned that smaller businesses with fewer resources may experience difficulties.
Robert Bean, Managing Partner at Grunberg & Co, said, “We have spent a lot of time helping our clients migrate to the latest cloud accounting technology in light of these requirements, but we are aware that this latest change will be especially hard for smaller firms.
“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 to get the systems and processes required in place.”
The Government has said that around a quarter of VAT registered businesses below the VAT threshold have already voluntarily chosen to join MTD, but Grunberg & Co said that this means many more still need help.
It is offering its expertise and support to a wide range of small businesses, including many start-ups, across a wide range of sectors.
“Those businesses that are already complying with the MTD requirements have told us that early action was key for them,” added Robert.
“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 business.”