HMRC delays digital changes

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UK delays digital tax reformsThe Government has announced that plans to make self-employed people and small businesses keep digital records and report their income to HMRC every quarter have been delayed for a year following pressure from professional bodies. Making Tax Digital for Income Tax will now be introduced in April 2024. Lucy Frazer, Financial Secretary to the Treasury, said: “The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity. But we recognise that, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change, which is why we’re giving people an extra year to do so. We remain firmly committed to Making Tax Digital and building a tax system fit for the 21stcentury.” General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025, while the date other types of partnerships will be required to join will be confirmed in the future. Martin McTague, national vice-chairman at the Federation of Small Businesses, said: "This move will provide millions of sole traders with a measure of breathing space and some encouragement in a climate beset by spiralling energy costs, supply chain disruption and high levels of debt."

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