Prepare small business clients for MTD

HMRC introduced making tax digital (MTD) to make the UK one of the most digitally advanced tax services in the world. The initial focus in 2019 was the requirement for all UK VAT-registered businesses with a taxable turnover above the £85 000 VAT registration threshold to comply with MTD requirements. Now the next deadline is looming.

From April 2022 all VAT-registered businesses below the £85 000 threshold will need to be compliant with MTD by keeping digital records and using software to submit their VAT returns. For small business owners who are less than digitally savvy this could be seen as a problem.

Worryingly despite it being compulsory for these businesses to be compliant by that deadline QuickBooks recently undertook research which found that half of small businesses with an annual turnover of under £85 000 have not even heard of the initiative.

Of...