Just a quick update to my previous blog post which covered the delay in implementing the extension to Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) to businesses and landlords until 2024.
It has now been announced that the introduction of the basis period reform has also been delayed until 2024. The delay comes after various professional bodies had written to the Treasury to suggest deferments of the date for implementation of both the MTD for ITSA and basis period changes, given the expected pressure it would put upon taxpayers and the agent community. That and the fact that HMRC clearly weren’t ready as a lot of the detailed rules had not been announced following consultation feedback.
The transitional year for basis period reform will now commence from April 2023 rather than the proposed April 2022 start date. The delay will be welcomed by all stakeholders and as I mentioned in my previous post, will enable everyone to embed the new rules and requirements and get comfortable with those, ahead of yet more changes.
Martin Tomes is HSKSG’s Director of Tax. He specialises in assisting and advising individuals and their businesses in all areas of taxation with an emphasis on tax planning, mitigation and compliance and also heads up the firm’s specialist property sector group.