Finance professionals struggle with MTD, survey shows
Financial reporting (30%) and costs of 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
Finance professionals are reportedly still struggling with the switchover to Making Tax Digital (MTD) software, according to a new survey commissioned by software company Yooz.
More than two months have passed since the UK’s latest deadline and the survey has shown that 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.
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.
The problem “could be worse than feared”, as the survey also found that finance professionals are having trouble hiring people with necessary skills (40%), which was highlighted as “the biggest recruitment challenge within the next year”. This surpasses wage demands (39%) and flexible, ‘work from home’ preferences (37%).
Fears of MTD readiness have reportedly loomed over finance and accounting departments for years and while VAT-registered businesses will be MTD-compliant now, digital processes are “continuing to confuse” many.
The survey also found that just 17% of UK businesses are fully prepared for electronic invoicing, with 68% reporting being “almost ready” or with plans in progress.
Laurent Charpentier, CEO at Yooz, said: “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.
“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 will provide an update on the current state of MTD in the UK and the April 2022 mandate in its webinar Today (23 June) at 12pm BST.
