Finger pen woman working ipad tablet

Making Tax Digital (MTD) delayed

Nicky Owen, Partner, Professional Practices
28/09/2021
Finger pen woman working ipad tablet

The government has announced that the introduction of Making Tax Digital (MTD) has been delayed until:

  • 6 April 2024 - for those individuals with more than £10,000 of income from self-employment and property
  • 6 April 2025 - for general partnerships
  • no date confirmed - for all other partnerships, including LLPs.

The delay will provide time for businesses, their representatives and HMRC to prepare and put in place robust IT solutions that deliver a digitalised process in line with the scope of MTD.

MTD will require digital records to be kept and to submit updates on a quarterly basis to HMRC with an “end of period statement” for each income source to finalise the reporting for each year.

In time, will this lead to tax payments on a quarterly basis?

The new penalty system for late filing and late payment of tax for income tax has also been delayed to be aligned with the introduction of MTD.

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Assessable profits will now be those arising in the tax year, which will impact firms who do not have a 31 March/5 April year end.
The government has announced a consultation on its proposal to simplify the rules under which profits of the self-employed are allocated to tax years.

Contact us

Nicky Owen
Nicky Owen
Partner, Professional Practices
London