HMRC has announced that the introduction of Making Tax Digital (MTD) for Income Tax self assessment (MTD for ITSA) has been delayed for a year.
The government says that the change is in response to the difficulty faced by many UK businesses throughout the COVID-19 pandemic.
MTD for ITSA has been delayed for one year, with the new start date being 6th April 2024.
The later start for MTD ISTA allows those required to join more time to prepare and for HMRC to deliver a robust service. It also means that there is 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.’
“The delay of MTD ITSA will be welcomed with open arms by those who are to move to the system when it is implemented. Many people have struggled with setbacks over the pandemic and they would have found it difficult to switch to a the new system.”
Nigel Holland