Rollout of the Government’s controversial Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) has been further delayed in order to give businesses more time to prepare for the changes.
In its announcement on 24th September 2021, HM Revenue and Customs (HMRC) stated that it had recognised the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic and had listened to stakeholder feedback.
The decision to push back the introduction of MTD for ITSA by one year to April 2024 follows concerns raised by the NRLA that landlords and businesses would struggle to be ready by 2023, especially without clarity about what accounting software is likely to be compatible with the new scheme.
Commenting on the announcement, Chris Norris NRLA Policy Director said: “HMRC’s announcement of a delay to the roll-out of MTD for landlords comes as a welcome relief at a time of such uncertainty for businesses.
“Although digitisation of the self-assessment process will likely bring benefits to many, the former deadline and lack of clarity from the Government has created a lot of concern in the landlord community.
“We hope that HMRC will use the extra time to engage with NRLA and ensure that guidance and necessary tools are in place well ahead of 2024 to ensure a smooth transition”
The regulations laid today (23 September) will mean that MTD for Income Tax will roll-out for businesses and landlords with a business income over £10,000 per annum in the tax year beginning in April 2024.