MTD lagging behind

A million yet to comply with MTD rules Only 6% of the 1.2m small business owners required to sign up to Making Tax Digital have done so, with just one week before the deadline. MTD rules mean firms with a turnover above the £85,000 VAT threshold must keep all records digitally and submit them to HMRC using approved software, but only 70,000 have so far complied. Alison Horner of MHA MacIntyre Hudson said: “Making Tax Digital has been on the cards for some time, but HMRC hasn’t always been effective in communicating how it will work, and many businesses have held off making preparations for too long. Panic as the deadline approaches could lead to serious pitfalls.” HMRC has said businesses will be penalised if they do not comply, although it will not issue filing or record keeping penalties where businesses are doing their best to adhere to the new rules.