Scottish firms ‘unprepared’ for digital tax rollout next April

Concern has been raised as new research suggests more than four in ten Scottish businesses remain unprepared for digital VAT rules which come into force in the spring.

A Uk-wide survey of 640 finance directors by auditor RSM found that 44 per cent of respondents in Scotland were either “somewhat or very unprepared” for the introduction of the UK government’s Making Tax Digital rules on 1 April.

Just 3 per cent of Scots described themselves as very prepared for the new rules, which dictate that Vat-registered businesses trading over the VAT threshold of £85,000 will be required to keep records in a digital format.

The figures north of the Border reflect the wider picture in the UK, with only 4 per cent of companies nationwide feeling very prepared.

Jim Burberry, VAT partner at RSM, said: “With just four months to go before Making Tax Digital becomes a reality, it’s concerning that so many businesses appear to be so unprepared.

“From my discussions with our clients and contacts in Scotland there is a lack of understanding of the business benefit of such a change and indeed concern that there is not enough information and time to be able to comply with either start date.

“Affected businesses should make the necessary enquiries of their software suppliers and tax agents. Businesses need to make the few months count.” 0 RSM’S Jim Burberry said the figures were ‘concerning’