Switch to MTD Delayed to 2024

The government has delayed the switch to MTD (Making Tax Digital) to 2024, with a tax year basis also delayed until April 2024.

The Delay

The government have announced that switch to MTD for self-assessment and landlords has been postponed by 12 months and will take place in April 2024, giving businesses more time to recover from the pandemic. The base tax year of 2022/23 will not be interfered with by COVID related grants such as the SEISS payments.

The financial secretary, Lucy Frazer, announced, "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."

The deadline for filing for VAT return via MTD is unchanged and all VAT registered businesses must use MTD for VAT starting April 2022.

MTD Developments

MTD was originally proposed in late 2015, and planned to come into fruition in 2018, with the threshold for entering MTD currently at £10,000. Some have argued this number should be higher due to increased workload of switching to MTD

With the new delay put in place, it alleviates workloads from accountants and provides us with more time to associate clients with MTD.

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