Improved accuracy for VAT returns under MTD
Almost a third of company VAT returns are more accurate under Making Tax Digital (MTD), according to Thomson Reuters research.
The survey of UK accountants tax professionals found that whilst many companies have only recently started filing under MTD for VAT, they are recognising a number of benefits to being involved in the scheme.
Thomson Reuters also found that of those companies with solutions deployed, only 20% are using bridging software. In addition, 35% of firms are using a complete MTD digital tax reporting software platform or are in the process of transitioning to one by 2020.
According to the poll 51% of respondents reported having simplified or more efficient processes and 32% saying they now have more accurate VAT returns.
Additionally, 19% of companies said they also have better visibility of their tax liabilities due to MTD.
Commenting on the survey, Steven Smith, Europe Proposition Lead for Corporates at Thomson Reuters, said: ‘The build up to Making Tax Digital for VAT was clearly a worry for many organisations, but what is clear from the survey is that with the right technology, tax and finance departments can reap benefits far beyond simply filing VAT returns electronically.
‘Adopting a complete digital tax reporting software platform, gives them visibility of indirect tax across the transaction lifecycle and wider organisation. Additionally, the government is looking to maximise technological advances for the efficient collection and verification of transaction information to calculate a wider range of taxes.’