Recent reports show that 40% of businesses in the UK are still unaware of the Making Tax Digital (MTD) initiative. To give an idea of how many that is, there are 1.1 million businesses that this will affect. Meaning that 440,000 business are unaware of a major change in the UKs tax system, which is rapidly approaching.
There is around 6 months till MTD takes effect, meaning businesses need to start preparing for it now. But with so many businesses still unaware, many are looking at potential fines and penalties for improperly filing their tax. Many believe that this issue is being caused by HMRCs lack of communication around the issue. HMRC have been assuring that a campaign to inform all those affected by MTD should be starting soon, but is 6 months before the deadline going to prove to be too little, too late.
For more information on MTD, so you know whether this will affect you or not, go to Making Tax Digital.