Three in five (58%) small businesses in Wales still have work to do before they are ready to comply with new Making Tax Digital rules, new research suggests.
The findings from Lloyds come as sole traders and landlords move to HMRC's MTD for Income Tax requirements, which asks eligible taxpayers to maintain digital records and submit quarterly updates using compatible software.
Nathan Morgan, Area Director for Wales at Lloyds, said:
“Making Tax Digital represents one of the biggest administrative changes many sole traders will have experienced for years. Our research suggests that while businesses recognise the benefits of digital record keeping, many are still working through what they need to do before the first submission deadline.
“With small business owners already balancing multiple demands on their time, simplicity matters. That's why we've built HMRC-recognised Making Tax Digital for income tax functionality directly into eligible Lloyds Business Accounts at no extra cost, helping customers manage tax administration alongside their everyday banking.”
Among small businesses in Wales already preparing for the first submission on 7 August, 41% said the move to digital tax management had helped them become more organised, while 16% said it had reduced last-minute tax stress.
More than three quarters of respondents in Wales (79%) said it would be useful to manage tax records, deadlines and administration through their banking app or online banking, highlighting demand for simpler ways to comply with the new rules.
The new rules apply to sole traders with annual revenue of £50,000 pa and above, reducing in the next two years to £30,000 and then £20,000.
