Half of businesses not MTD ready, according to report

Half of businesses not MTD ready, according to report

More work needs to be done if the advantages of automation - including attracting a younger workforce - are to be enjoyed, says a report by Tax Systems

Half of businesses not MTD ready, according to report

Despite increased awareness of MTD regulations, 50% of businesses are still not ready for MTD, with 30% still in the planning stage and 20% yet to begin preparations, according to a new report by Tax Systems.

The report, A Tax Professionals Survey 2019: Attitudes and Approaches to Making Tax Digital, recommends more support for businesses to get MTD ready before the deadline.

“Our results suggest the need for more education from vendors around options for process testing, since 58% of respondents did not know about options to test processes before formally signing up to the service,” the report said.

Our infographic (below) summarises the findings of the report. Article continues underneath

Embracing MTD?

Tax Systems’ report also showed that there was an increasingly positive outlook on MTD and technology in general, with nearly half of respondents believing that MTD would lead to better accuracy and fewer errors.

“Initially, it would appear that automation is still in its relative infancy when it comes to tax since 80% of survey respondents still use spreadsheets in their compliance processes. However, there is a clear effort to move away from this as professionals begin to recognise the benefits of automation and how they can use it to assist in their everyday work as well as longer projects,” Tax Systems’ report said.

Using technology to attract millennials

Sixty-two per cent also felt that a wider embrace of technology could help attract younger employees into the workforce.

“As Millennial and Gen Z workers begin making up more of our workforce, this tech-savvy generation will want and even demand more automation as they are used to bypassing manual compliance work and other tasks,” the report said.

“If you combine the increasing regularity and quality of automation with a growing workforce who want it in their businesses, we can expect to see automation continuing to redefine current jobs and allow tax professionals to undertake more value-added and arguably more interesting work.”

“Tax professionals realise businesses need to embrace automation in the next five years and they are prepared to navigate the challenges it brings”

However, there was still some way to go to convince everyone, with 65% believing that automation would not move tax professionals away from their spreadsheets.

“Automation is very much the future. Spreadsheets are still massively in use, but this is unsurprising. MTD and the wider change that automation brings is colossal and businesses could never have been expected to make the switch overnight. Tax professionals realise businesses need to embrace automation in the next five years and they are prepared to navigate the challenges it brings,” the report said.

Related Articles

3,800 businesses miss VAT deadlines due to MTD struggles

Making Tax Digital 3,800 businesses miss VAT deadlines due to MTD struggles

1w Chris Jewers
MTD: Are your clients ready? Here's a three-step guide

Making Tax Digital MTD: Are your clients ready? Here's a three-step guide

1w Ed Molyneux, CEO
MTD: just 12% of decision makers feel 'very prepared'

Making Tax Digital MTD: just 12% of decision makers feel 'very prepared'

2w Chris Jewers
Make time for Making Tax Digital

Making Tax Digital Make time for Making Tax Digital

4m Andrew Pritchard, Managing Director, Datel
Everything you need to know about our Making Tax Digital event

Making Tax Digital Everything you need to know about our Making Tax Digital event

5m Lucy Skoulding, Reporter
Making Tax Digital: Moving your clients to the cloud

Making Tax Digital Making Tax Digital: Moving your clients to the cloud

5m Sage | Sponsored
How bridging software can ease the transition to Making Tax Digital

Making Tax Digital How bridging software can ease the transition to Making Tax Digital

5m Wolters Kluwer | Sponsored
'There's always time for Making Tax Digital': How to get your clients ready for the deadline

Making Tax Digital 'There's always time for Making Tax Digital': How to get your clients ready for the deadline

6m Sage | Sponsored