Making Tax Digital (MTD) delayed
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.
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.
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.
