SME's unprepared for MTD

 SMEs unprepared for digital transition

A study by UK200Group has found that 65% of their members do not use accounting software, meaning a transition to quarterly reporting by 2018 through HMRC’s Making Tax Digital programme will prove problematic. UK200Group members service about 150,000 SMEs, but only 35% use software such as Sage, Xero or Cashflow while 27% use spreadsheets and 22% use manual record keeping. However, 16% still use the shoebox method. Andrew Tyrie, chairman of the Treasury Committee of MPs, has written to the Treasury and the FSB querying transition costs. The FSB has estimated the change will cost £2,770 per year per business on average while the Treasury claims it will cost £280. Mr Tyrie said: “At least one of them must be wrong. If the FSB are right, the effects of MTD would be crippling for small businesses.”

The Mail on Sunday (19/02/2017)