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 ...
Making Tax Digital for Income Tax has been delayed until 2024!
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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
