It has now been confirmed that the introduction of Making Tax Digital (MTD) for Income Tax will be postponed by a year until April 2024.
General partnerships will not be required to join MTD until April 2025.
The Government has also recently launched a consultation on a reform to the basis period rules that govern how self-employment profits are taxed. The proposals mean that profits will be taxed on a “tax year” basis rather than the current year basis. It has been confirmed that these changes will not come into effect before April 2024, with a transition year not coming into effect earlier than 2023. The Government will respond to the consultation and provide further details about the next steps in due course.
We will provide further updates when these become available.
Would you like to know more?
If you would like to discuss the above or how it may affect you and your business, please get in touch with your usual Blick Rothenberg contact or one of the Partners whose details are listed on this page.
You can also visit our Making Tax Digital hub for more information.