UK Delays Making Tax Digital for Income Tax

The Government's plan to introduce Making Tax Digital for Income Tax, which will make all self-employed people and small businesses keep full digital records and report their income to HMRC each quarter, has been delayed for another year ...

The Income Tax (Digital Requirements) Regulations 2021, more commonly known as Making Tax Digital for Income Tax, will now be introduced in April 2024 instead. HMRC says that the digital tax system they are building will be efficient, easier to get tax right, and will mean increased productivity,

"But due to the pandemic, they're giving us more time!"

The Government is still committed to Making Tax Digital for Income Tax, but we need to recover the economy and both small businesses and individuals cash flow and savings. In an environment of spiralling energy costs, supply chain disruption and high levels of debt, this is a sensible move.

Additionally, Making Tax Digital for Income Tax will start for all those businesses in scope from 6 April 2024, regardless of their accounting date. The start date for partnerships has not been set in legislation, but the government has announced that it will be put back to 2025.

An announcement on whether basis period reform will go ahead is expected in the Budget on 27 October and a new system of penalties will come into force at the same time!

I feel this is a good move on the part of the Government and will give us all the headspace to ready ourselves for Making Tax Digital for Income Tax to start in a few years time.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.