Making Tax Digital is being postponed (again)

Making Tax Digital is being postponed (again)

The government has announced that the making tax digital (MTD) initiative will be postponed once again until April 2024 (it was due to be implemented in April 2023). This is due to the challenges already being faced by businesses from the impact of the pandemic.

Partnerships will have a little longer than sole traders and landlords to prepare as they will not be required to join until April 2025. The reason for the delay is to allow HMRC more time to over come the complexities of how to apply the MTD rules and reporting requirements for partnerships.

The MTD scheme will require businesses to maintain their records digitally and to submit quarterly figures on their business income and expenses to HMRC. This will replace the need to file an annual self-assessment form, a final return with any other income, gains or reliefs will be needed.

There will no change to when income tax is currently paid and the penalties for not complying will be covered by the penalty points system which you can read more about here. 

This will see a big shake up of the tax process for businesses and it is worth getting organised ahead of time to ensure no issues or penalties for late filing.

Get in  touch with the friendly Clear Vision Financial Management team to find out how we can help you with your accounting needs. You can call us on 01794 330025 or email us.