The Treasury has confirmed a two-year delay to the Making Tax Digital for income tax (MTD ITSA) timetable. The First Secretary to the Treasury has a written statement confirming the changes.The timetable change has followed calls from professional bodies and even HMRC’s own Administrative Burdens Advisory Board and others expressing concern about the proposals.
Financial secretary to the Treasury, Victoria Atkins has released a ministerial statement setting out adjustments to the scope and timing phases of MTD ITSA:
Atkins has said the government remains committed to introducing MTD for ITSA to partnerships and that the decision on when they might join the scheme will be taken at a later date, as for those on less than £30,000.
“The government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA represents a significant change for taxpayers, their agents, and for HMRC,” the minister wrote.
To maximise the benefits of MTD for small business, the government opted to allow more time to prepare, “so that all businesses, self-employed individuals, and landlords within scope of MTD for Income Tax, but particularly those with the smallest incomes, can adapt to the new ways of working.”