MAKING TAX DIGITAL POSTPONED UNTIL 2024
Posted on 22nd November 2021 at 14:19
HMRC postpones Making Tax Digital until 2024
Basically, the changes to digital tax have been delayed to allow more time for customers taking part in the pilot and also for the government to enhance the service.
WHAT DOES IT MEAN?
MTD or Making Tax Digital was first introduced in 2019 for VAT returns for businesses with a taxable turnover of more than £85,000 and the plan was to extend this into other areas such as income tax self-assessments (ITSA). The idea was to reduce errors that could lead to incorrect tax payments and also to reduce tax evasion.
The latest changes announced by HMRC mean that MTD will now not come into force until April 2024 for businesses and landlords with a yearly business income over £10,000. This means that those businesses will need to keep digital records and use accounting software to update HMRC quarterly.
The government said that the challenges faced by many UK companies following the pandemic, as well as stakeholder feedback, were among the factors prompting the most recent decision to postpone the implementation again.
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