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MTD for income tax self-assessment delayed until 6 April 2024

MTD for income tax self-assessment delayed until 6 April 2024

Louise Hastings

The government has delayed the start of MTD ITSA (Making Tax Digital for Income Tax Self-Assessment) from 6 April 2023 to 6 April 2024 for self-employed businesses and landlords, with MTD for general partnerships postponed to 6 April 2025. The change to the tax year basis has also been delayed until at least April 2024. This will affect unincorporated businesses and landlords with total business or property income above £10,000 per year.

This latest delay to MTD is a pleasant announcement for most businesses as it allows for more time to prepare for the latest instalment of MTD.

The reason for the change is as the government has said that it recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic and this delay provides more time for those required to join to make the necessary preparations to digitise their financial records.

In addition to this, a new system of penalties for late filing and late payment of tax is being introduced alongside MTD. The start date for this is also delayed until the 2024/25 tax year for those mandated for MTD ITSA from that date and from 2025/26 for all other ITSA taxpayers.

For more information and to stay abreast of any MTD changes you can use our Making Tax Digital Hub or if you need assistance with starting your MTD journey, please contact a Moore adviser