MTD delay welcomed
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ATT and CIOT welcomed the announcement that the government are delaying Making Tax Digital for Income Tax until April 2026 for those in the first stage, and later for smaller businesses.
Following the publication of the Financial Secretary’s written statement a week before Christmas, Alison Hobbs, Chair of the joint CIOT and ATT Digitalisation and Agent Strategy Committee, said: ‘This announcement recognises reality. The incredibly limited testing, combined with significant problems still to be resolved, means that this delay had to happen.’
An ATT/CIOT survey of tax professionals, carried out earlier in December, found that 97% of respondents did not think that MTD for ITSA, in its current form, could be successfully introduced from April 2024. It found widespread concern around taxpayer awareness, taxpayers’ ability to comply with the new requirements, software availability and HMRC’s own capacity to support taxpayers and agents.
The survey found that more than three quarters of tax professionals who responded think keeping digital records will be useful. However just one in three thinks quarterly reporting will be useful.
Survey results can be found at: tinyurl.com/mu72emrf
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