Making Tax Digital For Income Tax Delayed Until 2024
In a written statement to the House of Commons on 23 September 2021, the new Financial Secretary to the Treasury, Lucy Frazer, announced that the Making Tax Digital for Income Tax (MTD for ITSA) will be postponed until April 2024.
The written statement also mentions that general partnerships required to join MTD for ITSA will be delayed until the tax year beginning in April 2025, while the date other types of partnerships required to join are yet to be confirmed.
These delays are a result of the UK Government recognising the challenges faced by many UK businesses and their representatives due to the pandemic and having listened to stakeholder feedback.
While a later start for MTD for ITSA will give those required to join the scheme an additional year to prepare, HMRC will also use this time to deliver the most robust service possible and it will afford them additional time for testing in the pilot.
Partner, Angela Haig, commented:
“This delay is welcome and follows much lobbying by agents and the professional bodies, but it is not going away. Businesses and landlords need to be prepared for the additional administrative burden of making quarterly returns to HMRC when it arrives.”
MTD for ITSA is not to be confused with Making Tax Digital for VAT (MTD for VAT), which has been in place for VAT-registered businesses with a taxable turnover above £85,000 since April 2019, and will roll out to all VAT-registered businesses from April 2022 as mentioned in our previous article.
For more information or to discuss your circumstances, please get in touch with our MTD Taxperts by emailing [email protected] or calling one of our offices.