Making Tax Digital for Income Tax delayed until 2024
On 23 September HMRC announced that the introduction of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) will be postponed by a year until April 2024.
It means businesses and landlords with a business income over £10,000 will now have an extra year to prepare for the digitalisation of income tax.
General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025.
The date other types of partnerships will be required to join will be confirmed in the future.
According to HMRC, the decision to delay MTD for ITSA is because it recognises the challenges faced by many UK businesses as the country emerges from the pandemic.
HMRC said a later start for MTD for ITSA gives those required to join more time to prepare and for HMRC to deliver a robust service, with additional time for customer testing in the pilot.
We will provide further updates when they become available.
For further information on MTD for ITSA, please contact Aaron Phillips below.
Director of Tax01244 323051Chester
Written 1 October 2021.