Minister makes confident statement about MTD
Tax policy expert Brian Palmer of AAT gives the lowdown on the government's findings on the uptake of MTD among VAT mandated companies so far - and it's looking good
Tax policy expert Brian Palmer of AAT gives the lowdown on the government's findings on the uptake of MTD among VAT mandated companies so far - and it's looking good
The Financial Secretary to the Treasury (the Rt Hon) Mel Stride’s made a statement in the House of Commons, setting out the positive progress that has been made in delivering Making Tax Digital for VAT.
The level of engagement from business in Making Tax Digital so far, as revealed by Mel Stride today, has significantly increased. Over 80 percent of businesses in scope having started to prepare shows that a good number will be ready by the time of the go-live date and face minimal disruption.
Yet there’s still almost a fifth of mandated businesses, who the message needs to be communicated with, and who may not have started to prepare. So, I was reassuring to learn from the Minister that HMRC will now be ramping up its communications, using different channels to reach the remaining businesses. Who are inevitably hardest to communicate with.
A the same time as the Minister was addressing the House, HMRC published “Research Report 519 – Making Tax Digital – Monitoring Businesses’ Awareness of MTD (summary findings).”
Their research is primary quantitative research with both VAT business customers and Income Tax business customers. It has the aim of tracking and monitoring awareness of and readiness for MTD and its requirements.
In total 500 quantitative telephone interviews were conducted between 26th November and 17th December 2018.
Summary of findings:
Toward the end of the report there are stats concerning Income Tax filers. As they are few in number I have not floated the information out.
Brian Palmer is a tax policy adviser and a UK-leading authority on Making Tax Digital who advises, blogs and lectured extensively on this and other important area of taxation.
brian@taxpolicyadvice.com
What do you think? Does the statement indicate that software companies are scaremongering about lack of preparation for MTD, or is there still a lot of work to be done? Leave your comments below.