With less than two months to go before the deadline for Making Tax Digital (MTD) for VAT, many businesses are still not prepared, according to a report by software provider Advanced.
The first businesses that are VAT-registered and have an annual taxable turnover of more than £85,000 will be the first to be mandated into the government scheme, from 1 April 2019.
However, in a survey of more than 1,000 business professionals, only 57% said they will be ready for the MTD rollout, while 35% admitted they don't know whether they'll be ready or not.
Jon Wrennall, chief technology officer at Advanced, said:
"The Government is right to implement initiatives that mean organisations need to become more digital, but our research suggests that not enough support is being given to help them prepare."
MTD is intended to modernise the tax system, and make it easier for businesses and eventually individuals to record and report their tax accurately.
Those included will be required to keep digital records and file quarterly and year-end returns with HMRC through compatible software.
The start date for MTD for VAT depends on where the business's VAT return quarters fall, and those with return quarters ending on 31 March, 30 June, 30 September and 31 December will be among the first to join.
We can help you prepare for MTD.