The Government announced on 23rd September that Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), for businesses and landlords with a business income over £10,000 per annum, will be introduced a year later than planned, now due to commence in April 2024 rather than April 2023.
General partnerships will not be required to join MTD for ITSA until April 2025, while the date other types of partnerships will be required to join will be confirmed in the future.
The delayed introduction of MTD for ITSA is recognition by the Government of the various administrative & financial challenges faced by many UK businesses and their representatives as the country slowly emerges from the Covid19 pandemic.
This is a welcome development for taxpayers and their advisers, giving both more time to prepare for these substantial changes and has come as a result of the Government having listened to stakeholder feedback, from taxpayers, accountants and professional accountancy & other business organisations.
The announcement yesterday came in the form of a written statement to the House of Commons.
"We recognise that, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change, which is why we’re giving people an extra year to do so. We remain firmly committed to Making Tax Digital and building a tax system fit for the 21st Century” announced the new financial secretary Lucy Frazer.
We will of course keep clients fully informed of future announcements and developments regarding MTD for ITSA.