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While the vast majority of accountants (83%) see making tax digital (MTD) for ITSA as beneficial to their business, just one in three (34%) are very confident about the process – and nearly six in 10 don’t even know when it comes into effect (59%) – according to a new study from global technology platform, Intuit QuickBooks.
Intuit found that less than half (41%) of accountants surveyed knew that MTD for ITSA regulations come into effect in April 2024 – with just 32% having said they fully understand the requirements. What’s more, continual delays to the legislation so far has led 31% of accountants to believe the deadline will be further pushed back.
Despite almost all accountants surveyed (93%) claiming to know which of their clients need to be compliant, Intuit said “it’s clear that the industry and HMRC must use the next 18 months to adequately educate accountants about the upcoming changes”.
In addition, it found one in three (32%) plan to proactively outreach to prospective clients, while one in five (20%) expect more clients to proactively outreach to them. Meanwhile, almost half (44%) agree the new rules will open up new customer segments, driving organic growth.
Nick Williams, director, Intuit QuickBooks, said: “It’s positive that so many accountants see MTD ITSA as a business opportunity – and that they’re ready to face the changes head on despite not feeling as confident as they’d like.
“Increased support from both HMRC and software firms will be essential, to help them successfully assist clients to meet the requirements and to grow their client base. Software providers should aim to offer always-on guidance and help from experts to make this boom in business a reality for accountants.”
Simon Brook, managing partner, Broadbents Accountants LLP, added: “After so many delays and complex changes to the requirements, it’s no wonder MTD ITSA has many accountants confused. At Broadbent, we rely enormously on the support and expertise of the QuickBooks team to help us make sense of how to tackle new legislation, meaning we can spend our time helping our clients and growing our business.”
