New survey shows tax is taxing despite going digital
23 June 2022 – Finance professionals are still struggling with the switchover to Making Tax Digital (MTD) software, according to a new survey, more than two months on since the UK’s latest deadline.
Training staff and getting employees to use new systems has been the biggest challenge so far, with more than a third (37%) of finance professionals struggling to get to grips with the software, according to a survey commissioned by Yooz.
Financial reporting (30%) and costs associated with adopting new software (30%) were also listed as significant challenges, while one in four (24%) still citing a lack of information and understanding on MTD compliance.
And this problem could be worse than feared, as the survey also found that finance professionals are having a hard time recruiting new staff.
Hiring people with necessary skills (40%) was highlighted as the biggest recruitment challenge within the next year – more so than wage demands (39%) and flexible/home working preferences (37%).
Fears of MTD readiness have loomed over finance and accounting department for years and while VAT registered businesses will (or should) be MTD-compliant now, digital processes are continuing to confuse many.
Just 17% of UK businesses are fully prepared for electronic invoicing, with a whopping 68% almost ready or with plans in progress.
“Although it’s natural that there would be a few teething problems with companies making the switch to Making Tax Digital, it’s clear that there are plenty of hurdles still to overcome,” said Laurent Charpentier, CEO at Yooz.
“There’s widespread acknowledgement that Making Tax Digital is the right approach for the future, but it seems the pace of change has left many wondering what they have to do to not just remain compliant, but remain in business. They say tax doesn’t have to be taxing, but it seems many within the business would agree entirely with that statement.”
Yooz is providing an update on the current state of MTD in the UK and the recent April 2022 mandate in their webinar on June 23rd, 12pm BST. Register for the webinar here: https://www.getyooz.com/en-gb/webinar-edu-live-mtd-2022-06-23