Although there is less than a month until the roll out of the Making Tax Digital (MTD) for VAT extension, 82% of eligible businesses are unaware of the approaching deadline, according to a survey commissioned by QuickBooks.
The survey revealed that there has been a small overall increase in awareness of the MTD deadline since November. However, it also found that less than a third of UK businesses know what they need to do to become MTD compliant. This has fallen from 38% since November, as the reality of getting up to speed approaches.
VAT-registered businesses with an annual turnover below £85,000 will need to be MTD compliant from 1 April 2022.
Pauline Green, Head of Product Compliance and Programs at QuickBooks, said: ‘Raising awareness of the deadline is even more important to ensure as many businesses as possible are confident and ready ahead of 1 April.
‘For UK SMEs, failure to comply with MTD will lead to penalties on a first completed VAT return, on or after the deadline. Going digital may seem like a daunting prospect, but it doesn’t need to be – and there is plenty of help and support available for those who are yet to embark on the process, even as deadline day approaches.’