Is your business ready for Making Tax Digital? – Survey results show that many small businesses are NOT.

A recent survey carried out by the UK200Group has founds that many small businesses do not feel at all prepared for the upcoming implementation of the Making Tax Digital (MTD) initiative being introduced between 2018 and 2020.

The UK200 group finds that around 65% of UK firms do not currently make use of accounting software. The MTD measure is intended to create a more accessible tax system which also has more transparency, which will fit in with our more modern, digital age.

It was found that 27% of small businesses use basic computer programs for their bookkeeping, and 22% still keep their records manually. These small firms will soon be required to adapt to a complete new full accounting package to make them fully compliable with HMRC’s plans.

Chair of the Digitalisation Taskforce at the UK200 Group, Richard McNeilly, stated that ‘MTD represent the single most significant change to the UK’s tax system of taxation in recent times…. Many of our smaller business clients are simply not ready for it’.

This can be worrying for small businesses as if HMRC stays committed to having businesses completely report and pay tax digitally by 2018, small firms have only a short amount of time to update their systems.

At True Dynamic, we can help small businesses make the jump towards digitalization of their records because of MTD initiative, we are specialists in the digitalization of tax.