The UK government have announced by a written statement that part of its ambition to become one of the most digitally advanced tax authorities in the world, through the Making Tax Digital (MTD) scheme, has been delayed.
MTD for Income Tax Self Assessment (ITSA) is now set to be live a year later than planned, beginning April 2024.
In the statement, which was published on 23 September 2021, Lucy Frazer, Financial Secretary to the Treasury said, “The Government recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, we will now be introducing MTD for ITSA a year later, in the tax year beginning in April 2024”.
The Financial Secretary to the Treasury added, “A later start for MTD for ITSA provides more time for those required to join to make the necessary preparations and for HMRC to deliver the most robust service possible, affording additional time for testing in the pilot”.
MTD for Income Tax will now be mandated for businesses and landlords with a business income over £10,000 per annum in the tax year beginning in April 2024.
General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025, while the date other types of partnerships will be required to join will be confirmed in the future.
If you have questions about the Making Tax Digital scheme and how it could affect you, please don’t hesitate to contact one of our highly trained staff by calling 0800 195 3750 or email@example.com.