Knowledge gap still a problem
One of the more surprising statistics published last month from ICAEW suggested that over 40% of businesses that will be affected by Making tax digital in April, are still not aware of it. As we have addressed previously on whose responsibility is the Making Tax Digital knowledge gap, accountants, software providers and HMRC themselves are responsible for closing this gap in the run up to mandation in April 19.
HMRC attempting to close the Gap
HMRC’s communication timeline suggests that they will step up their education of stakeholders in the back end of this year. They will use a variety of channels to try and get the message out there including YouTube clips, trade press, local radio and social media. The first set of eligible businesses can also expect a letter informing them of the changes towards the end of the year with the remaining deferred businesses (exempted charities and trusts) being sent a letter in the first quarter of next year. Clearly HMRC recognise that more must be done and this schedule will go some way to getting the message to those affected.
Time for preparation
With only 100 days to go until the legislation comes into force, now is the time to start preparing. Accountants in particular are already running out of time to find solutions for their clients. It has been estimated that it takes an average of 8-11 hours to migrate a client to a cloud accounting package. For a small practice with 50 “spreadsheet” clients, the total time to get them on to an MTD platform is approximately 60 man days. There is a less time-consuming way to get these clients MTD compliant and bridging software could be a way of avoiding this lengthy migration process.
My Digital Accounts offers a suite of MTD compliant solutions for MTD, whether it be a full bookkeeping package or bridging software for spreadsheets, get in touch. We can help you join the pilot scheme prior to April 19 which is the most effective way to prepare.
This weeks blog has been bought to you by Dan Moss