• Register
Return to: Home > News > Financial Results > MTD legislation to spur demand for accountancy compliance services 

MTD legislation to spur demand for accountancy compliance services 

UK accountants are likely to provide more clients with VAT submission services due to the Making Tax Digital (MTD) legislation, according to research by IRIS Accountancy Solutions.

MTD is legislation which is due to come into force in April 2019 and aims to modernise the way that individuals and businesses in the UK manage their tax.

Registered businesses operating with taxable turnover above the VAT registration threshold will be required to keep digital accounting records and file VAT returns using MTD compliant software from April 2019.

The research found many of the accountants from the 553 accountancy practices surveyed do not believe their clients are willing to continue to spend time keeping their books up-to-date and would prefer their accountant to deliver bookkeeping services.

Over half (58%) of accountancy practices expect to provide bookkeeping services for clients from 2019.

IRIS found nearly three quarters (73%) of accountants will continue to carry out submissions for clients when Her Majesty’s Revenues and Customs’ online VAT service is no longer available for businesses with a turnover above the VAT threshold.

Nearly two thirds (63%) of accountants would make quarterly VAT submissions using bookkeeping software in April 2019.

IRIS Accountancy Solutions CEO, Sion Lewis, commented: “The IRIS survey confirms MTD for VAT is likely to increase demand from UK businesses for accountancy practice compliance services. Accountants need to retain the compliance loop at the core of their practice but they should also use them as the springboard for value-added services, enabling to stay relevant in the coming years.

“MTD is the centre piece of the digital economy in our industry and every reputable vendor is going to huge lengths to ensure their clients of all sizes can maximise the opportunities as the industry transforms.”

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.