Top 100 accountancy firm, Grunberg & Co, is making a final plea to businesses to prepare for the upcoming changes to making tax digital before they run out of time.
VAT-registered businesses above the VAT threshold will have to record and report their VAT affairs digitally from 1 April 2019.
In order to do this, they must ideally use ‘functional compatible software’, or an API-enabled spreadsheet or a traditional spreadsheet and a bridging software to link with HMRC digitally.
However, despite assisting the majority of its own clients facing this change, Grunberg & Co worries that many more may not be prepared and have hinted at recent research from software provider Advanced, which showed that only 57 per cent of companies are ready for this landmark shift in taxation.
Benjamin Grunberg, a partner at Grunberg & Co said, “The lack of official communication about these changes is very worrying and it is clear that a large number of businesses simply aren’t prepared yet for this change.
“HM Revenue & Customs has confirmed a soft-landing period for the quarterly reporting of VAT, but it has made it clear that those businesses that do not record their information digitally as required from April will be penalised.
“It is essential that those who aren’t ready seek help immediately to ensure they aren’t caught out.”
Grunberg & Co has been holding a series of workshops at its offices in London over recent months, however, it has said it is standing by to help businesses that aren’t ready for the changes.
“Like many of our peers, we are ready to help businesses with the implementation of the necessary software and procedures.
He added, “Where companies are unsure, we can also conduct a review of their current systems to ensure they comply.”