UK businesses welcome Making Tax Digital

New study has found that nearly two-thirds of senior decision-makers and businessmen in UK businesses are in favour of entirely tax accounts being digitalised.

A survey by YouGov for HMRC has found that the majority of business leaders say that Making Tax Digital (MTD) is a good thing. It has found that 62% of senior decision-makers support all tax accounts being digitalised. The poll also shows that 92% of them already use online banking for their personal finances.

Making Tax Digital promises to make bookkeeping easier, thanks to automation and other time-saving tools offered by accounting software. One in four (25%) of those working in a small business say they currently spend over ten hours a week on administrative tasks. And 65% of those polled said they have previously lost receipts.

HMRC is inviting businesses to join the pilot for Making Tax Digital for VAT ahead of the April 2019 roll-out. Most businesses above the VAT threshold will need to keep their records digitally and submit their VAT return using compatible software when MTD is introduced on 1 April 2019.

"Anything that helps businesses to manage their tax more easily so they can focus on what they do best - innovating, expanding, and creating jobs and profits - is what every modern business needs," said Mel Stride, financial secretary to the Treasury.

"In a world where customers and suppliers are already banking, paying bills and shopping online, it makes sense for HMRC and businesses to bring tax affairs fully into the 21st century."

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