Brought to you by
Thomas Reuters Logo

Award winning Digita Software from Thomson Reuters.

Save content
Have you found this content useful? Use the button above to save it to your profile.

Thomson Reuters Survey Reveals Accountants’ Views on Making Tax Digital

20th Feb 2017
Brought to you by
Thomas Reuters Logo

Award winning Digita Software from Thomson Reuters.

Save content
Have you found this content useful? Use the button above to save it to your profile.

87% of UK accountants and agents want more information about Making Tax Digital

LONDON, FEBRUARY 17, 2017 – according to the latest Making Tax Digital (MTD) survey by Thomson Reuters – 87% of UK accountants and agents feel that they need more information about MTD.

In polling the views of more than 500 UK accountants and agents on 9 February – nine days after HMRC issued its MTD consultation response (31 January 2017), Thomson Reuters found:

  • 87% of accountants feel they require more information about MTD.

  • Three-quarters (73%) feel that MTD should be delayed, as they still need more information and detail.  In contrast, almost a quarter (24%) don’t feel MTD should be delayed and just want to just get on with it.

  • 65% of accountants want to know now which of their clients will be exempt from MTD. 

Mark Purdue, tax product manager – Thomson Reuters: “Our findings show that accountants are looking to HMRC to confirm the turnover exemption so that it is clear as to which businesses will be exempt from MTD, or deferred until 2019.  In turn, this will allow accountants to plan for how they can advise their clients under the new MTD rules.”

In terms of information required, survey respondents cited the following items as the most pressing:

  • 65% – who is exempt

  • 23% – taxable profit workings

  • 10% – free software availability

  • 2% – detail on costs.

The cost of MTD has been estimated by various bodies to range from £280 (HMRC’s own figures) to £2,770 as calculated by the FSB. 

In the Thomson Reuters survey, 46% of accountants estimate the cost to their individual SME clients would be in the range of £200-£500 (in line with the HMRC estimation); 27% thought between £500-£1,000; 9% thought more than £1,000. 

Almost half of accountants are now starting to talk to their clients about MTD – an increase from 24% to 49% compared to August 2016 when the same question was asked.  51% still haven’t spoken to clients about MTD. 

Accountants are also split on whether they need support to deal with MTD effectively – with 44% stating they need professional help, support and training, and 45% unsure as it’s too early to tell.  Only 11% of accountants feel able to handle MTD themselves. 

Mark Purdue concludes: “The government is still considering the turnover figure for exemption and other fundamental issues, including the fiscal impacts of MTD.  Whilst it has been confirmed that final decisions will be made before legislation is laid later this year, our research shows that the accountancy profession is looking for more information and answers now.”

Thomson Reuters is providing its MTD software solution, Onvio Tax, as part of public beta for MTD due to commence April 2017.  Onivo Tax for MTD will be demonstrated to accountants at SYNERGY – its annual conference taking place 29 and 30 March 2017 – and is urging its tax and accounting software clients to take part in the public beta to ensure they get the opportunity to learn firsthand how MTD will function before the official introduction of MTD in April 2018. 

For more information on Thomson Reuters and Making Tax Digital, visit our MTD Hub.

ENDS

About Thomson Reuters – the Answer Company
Thomson Reuters provides professionals with the intelligence, technology and human expertise they need to find trusted answers.  We enable professionals in the financial and risk, legal, tax and accounting, and media markets to make the decisions that matter most, all powered by the world's most trusted news organisation.

Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, visit www.thomsonreuters.com.

CONTACT
Tina Allen 
Director, Public Relations
Thomson Reuters
Office: +44 (0) 207 375 6814
Mobile: +44 (0) 7766922022
Email: [email protected]

Ellen Carroll
Nellie PR
+44 (0) 1626 249045
+44 (0) 77906 31547
[email protected]

Tags: