Making tax digital (MTD) for income tax is being delayed, originally due to come in from 6 April 2023 this has now been delayed. New proposed timetable:
- 6 April 2024: MTD for individual landlords with >£10k pa of rental income.
- 6 April 2025: MTD for general partnerships.
- No sooner than 2026: MTD for corporation tax.
The government has said that it recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic and this delay provides more time for those required to join to make the necessary preparations.
Here is the link to the full written statement Written Statement
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.’