Making Tax Digital
HM Revenue and Customs (HMRC) announced that the UK Government will introduce MTD for Income Tax Self-Assessment (ITSA) a year later than originally planned, with the new launch being planned for April 2024, rather than April 2023.
Part of the UK Government's ambition to become one of the most digitally advanced tax authorities in the world, the delay comes after they recognised challenges faced by many UK businesses as the country emerges from the pandemic.
The MTD extension applies to businesses and landlords with business and/or property income over £10,000 per annum that are liable for Income Tax from April 2023. Those within scope must keep digital records and use software to update HMRC quarterly using MTD software. The new measures do not change deadlines for when tax must be paid.
Simple partnerships are not required to join MTD for Income Tax until the tax year beginning in April 2025.