A new study by award-winning cloud accounting provider FreeAgent has unveiled a range of key concerns shared by accountants in relation to the government’s new Making Tax Digital agenda.
In a webinar covering last minute tips for accountants on the impending MTD for VAT deadline on April 1st, FreeAgent polled attendees about the forthcoming legislation and discovered that over 50% of accountants see bridging software as only a temporary solution to Making Tax Digital.
During the broadcast, over 300 accountants were asked about whether they saw bridging software as a temporary or long term solution to MTD. Less than 30% saw it as a feasible long-term solution to MTD and about 20% said they had no intention of using bridging software.
Accountants were also asked what they thought would be the biggest MTD challenge after the 1st April. More than 30% of accountants that responded felt that going forward, client education would be the hardest challenge to overcome.
The general feeling among this group of accountants was that there may be issues in the future around making sure their clients understand:
- The need for accounting software
- How to use the various accounting software packages
- The requirements of HMRC and MTD
In order to help accountants with the challenges around client communication, FreeAgent has launched an MTD Express pack - featuring everything accountants need to get clients ready for MTD for VAT.