Date posted: 11th Oct 2021
The planned digital tax revolution has been postponed for the time being.
The government, having listened to stakeholder feedback from businesses and the accounting profession, announced that they will introduce Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) a year later than planned, in the tax year beginning in April 2024.
This will give the self-employed and buy to let landlords an extra year to prepare for the digitalisation of Income Tax and also allow HMRC more time for customer testing of the pilot system.
The start date for partnerships to join MTD for ITSA has been put back still further to the tax year beginning in April 2025.
There has been no change to the £10,000 per annum gross income threshold which means that most self-employed traders and buy to let landlords will be mandated to comply with MTD for income tax from April 2024.
Finally, the MTD changes planned for VAT registered businesses, will still come into force in April 2022.
If you have any queries regarding MTD, please contact our COMS team.