In a hotly anticipated written statement by the incoming Financial Secretary to the Treasury Lucy Frazer, it was today announced that The Government’s Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) programme will once again be delayed.
The official explanation is that The Government recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, MTD for ITSA will be introduced for individual businesses and property landlords a year later, in the tax year beginning April 2024.
Furthermore, partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025. The date at which all other types of partnerships will be required to join is yet to be confirmed.
There was no confirmation of where this leaves MTD for Corporation Tax which was original scheduled for April 2026. A later start for MTD for ITSA provides more time for those required to join to make the necessary preparations and for HMRC to deliver the most robust service possible, affording additional time for testing in the pilot.
This announcement will no doubt be a relief to many who felt HMRC were not in a position to roll out MTD for ITSA successfully in April 2023