Having listened to stakeholder feedback from businesses and the accounting profession, the government have 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.
Whilst this delay is welcomed by us, as a firm, we would still encourage clients to harness the power of cloud accounting systems regardless of the size or tax requirements. The efficiencies that can result from their implementation will often outweigh the small investment required.
We will keep you updated when more information comes available. In the meantime, if you have any questions or you want to discuss your situation, please contact a member of the Tax team on Tax@randall-payne.co.uk or 01242 776000.
