Making Tax Digital for Income Tax Self Assessment delayed for a year
The government says it has made the move in recognition of the challenges faced by many UK businesses as the country emerges from the pandemic.
MTD for ITSA will now be introduced in the tax year beginning in April 2024 – a year later than planned.
It says the later start for MTD for ITSA gives those required to join more time to prepare. It also provides more time for HMRC to deliver a robust service, with additional time for customer testing in the pilot.
Lucy Frazer, Financial Secretary to the Treasury, said:
‘The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.
‘But 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 MTD and building a tax system fit for the 21st century.’
Danielle Harvey ACA of Harvey, Telford & Bates comments:
“Making Tax Digital (MTD) is intended to make it easier for businesses to keep on top of their tax affairs. But with businesses coming out of the COVID-19 pandemic and facing fresh challenges, the delay may provide more time to prepare. Using this additional time to make sure you are ready for the introduction of MTD may be greatly beneficial. Should you need assistance on this, Harvey, Telford & Bates may be able to help you.”
For guidance and more information on how we can help your business prepare for the MTD introduction, contact us at 01743 462604 or email us at [email protected] .
For more information, you can visit the Gov.uk website by clicking here