Many companies undecided on which software to use

Making Tax Digital for VAT came into force in April but a recent poll of tax professionals’ attitudes towards the new regime shows that 32% of mandated companies are still deciding what their ultimate software platform and processes for reporting under MTD for VAT will be. 

The Thomson Reuters research found that only 20% are using bridging software, with 35% either using a complete MTD digital tax reporting software platform or in the process of making the transition to one by 2020.

Although many companies have only recently started filing under MTD for VAT some already acknowledge the benefits to being involved in the scheme, such as streamlining tax compliance processes through automation and improved reporting. 

Half (51%) reported having simplified or more efficient processes, with 32% saying they now have more accurate VAT returns. 

Likely to be one of the most valuable aspects of reporting under MTD for VAT is that already 19% of companies have found they have better visibility of their tax liabilities so early into the scheme.