In its latest poll of UK tax professionals’ attitudes towards MTD found that whilst many companies have only recently started filing under MTD for VAT, they have already acknowledged a number of benefits to being involved in the scheme.
The study found that half (51%) of respondents reported having simplified or more efficient processes, with 32% saying they now have more accurate VAT returns. Additionally, 19% of companies said they also have better visibility of their tax liabilities thanks to the scheme.
Thomson Reuters also found that of those companies with solutions deployed, only 20% are using bridging software, with 35% using a complete MTD digital tax reporting software platform or are in the process of transitioning to one by 2020.
Steven Smith, Europe proposition lead for corporates, at Thomson Reuters, said: “The build up to Making Tax Digital for VAT was clearly a worry for many organisations, but what is clear from the survey is that with the right technology, tax and finance departments can reap benefits far beyond simply filing VAT returns electronically.
“Adopting a complete digital tax reporting software platform, gives them visibility of indirect tax across the transaction lifecycle and wider organisation. Additionally, the government is looking to maximise technological advances for the efficient collection and verification of transaction information to calculate a wider range of taxes.”