Blog Article

3 in 4 finance sector firms not MTD registered with just 27 days to deadline

By Jenny Strudwick

Author

By Jenny Strudwick

Senior Product Manager

Jenny is Senior Product Manager for Tax at IRIS. She has been with IRIS for over 18 years working across many different departments including Support, Engineering and now Product Management. During this time she has been instrumental in major tax changes from FBI to iXBRL and now MTD. Jenny works closely with HMRC on major changes in taxation especially now as they develop their MTD strategy. Prior to joining IRIS, Jenny spent a number of years in practice and has now accumulated over 21 years’ experience in UK taxation and tax software.

See full bio

Updated 7th July 2022 | 2 min read Published 11th July 2019

3 in 4 finance sector firms not MTD registered with just 27 days to deadline IRIS | 3 in 4 finance sector firms not MTD registered with just 27 days to deadline

Nearly 75% of finance sector firms are yet to register for MTD, HMRC has revealed today, as it urged businesses to get moving fast before the 7 August VAT filing date.

Officials reported more than 600,000 businesses have signed up in total and some 400,000 submissions already successfully made using software.

I’m pleased to tell you that, of these, a significant number were made by IRIS customers using KashFlow and IRIS VAT Filer.

Some 10,000 businesses are registering for MTD every day, HMRC said today.

Businesses in the agriculture sector (such as farmers) have been one of the fastest groups to sign up, with 50% already registered. The finance sector (about 25%) is one of the slowest.

Many of the 1.2 million businesses affected by the MTD rules (those with an annual turnover above £85,000) will be required to submit their first quarterly VAT return to HMRC using software by 7 August. If paying by Direct Debit, these businesses must register by Monday 29 July.

I wrote the other day about how the registration process is the element causing most trouble. I’m hearing the same story from accountants that they’re somewhat baffled by the order things have to be done and how. If you’re in that boat, you can read my article here which should clear up any confusion. It explains how to complete the registration process.

In today’s announcement, HMRC points out that if paying by Direct Debit, businesses should register at least 7 working days before a return is due. If not paying by Direct Debit, businesses can register at least 72 hours (three days) before their return is due.

HMRC added: “Make sure you have MTD-compatible software and that your last pre-MTD Direct Debit has come out of your bank account before signing up.”

It’s worth also noting today’s news release included a quote from Theresa Middleton, Director of MTD at HMRC, stressing that the organisation will be adopting a soft landing approach to the early days of MTD.

She said: “During this first year we won’t be issuing filing or record keeping penalties to businesses doing their best to comply.”

As a last reminder, businesses can sign up for MTD on GOV.UK.

Need help with MTD? Email: MTD@iris.co.uk.