Businesses struggling with digitalising their finances despite Making Tax Digital (MTD) coming into force on April 1st 2021.
A mere 20% of UK finance leaders said their business was completely ready for the initiative, with many still scrambling for compatible software.
12% of finance leaders said they had considered the scheme but had not yet started, and a further 3% admitting they hadn’t even considered it yet.
One-third (34%) of UK businesses said they were almost ready in their MTD strategy, while 21% had started along the journey but still had some way to go.
The survey of more than 200 UK finance leaders, commissioned by automated Purchase to Pay provider, Yooz, showed many businesses are still without the tools needed for MTD, with just 23% fully prepared for electronic invoicing.
“The relaxation period intended to give businesses more time to adapt to MTD’s requirements ended on April 1, 2021, with businesses needing HMRC-approved software to remain compliant,” said Magali Michel, Director of Yooz.
“Businesses that fail to comply with MTD rules could face heavy penalties in a time where many are only just keeping their heads above the water financially. Making Tax Digital is there to keep businesses accountable if and when something goes wrong, and the transition should be seen as an opportunity to embrace new technology and a better way of working.”