Sunday, 07 September 2014 00:00

Hit or miss? How businesses fared under Making Tax Digital

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Now we’ve passed the first major hurdle for the new Making Tax Digital system, what have we learnt? And how do businesses get back on track if they missed the August deadline?

Nearly a million businesses registered for the first stage of Making Tax Digital. But almost a quarter of businesses failed to register in time, leaving them unable to submit their quarterly VAT returns by the 7 August deadline.

According to HMRC, over 900,000 VAT returns were successfully filed on time, reaching 60,000 filings per day at its peak.  

Unsurprisingly, with a new system and an explosion in demand, some businesses experienced problems with registration and filing online. Confirmation emails were slow to go out, meaning some people were unsure if they’d registered successfully. And the tighter registration window caught out some direct debit users. 

SMEs that missed the deadline

The introduction of Making Tax Digital has required major change for many SMEs, especially for those without MTD-compliant accounting platforms already in place. Although HMRC is adopting a lenient approach during the transition period, they’ve distributed 120,000 warning letters to VAT-registered businesses that missed the VAT return deadline.

At Garrod Beckett, we worked with our clients to help them prepare for the first stage of Making Tax Digital and are offering a specialist rescue service to get other businesses back on track.

If you’re an SME that missed the deadline, or if you’re in a muddle about Making Tax Digital, then we’re here to help. No judgement. No telling off. Just high-quality professional advice from SME specialists, and practical action to make your business compliant. And we’ll show you how to get the most out of a new way of working, so your business reaps the benefits.

What’s next?

As we get ready for the expansion of Making Tax Digital, it’s a good time for all businesses to start moving over to digital accounting systems so it’s much easier to get yourself in good shape for the changes yet to come. Before choosing a new system, it’s a good idea to get advice from your accountant on the different cloud-based systems on the market – as they offer a range of features which you may or may not need.

One of the main lessons from the first wave of the new system, is don’t leave it to the last minute!

If you’d like to find out more about our SME Making Tax Digital service, please get in touch.

Call Us:  0208 5912391  | Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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