Due to the challenges businesses have faced over the last 18 months caused by the pandemic, the introduction of Making Tax Digital for Income Tax has been pushed back to April 2024, instead of the initial proposal of April 2023.

This later start date gives businesses plenty of time to prepare for these changes, so they can first prioritise getting their business back on its feet.

Lucy Frazer, Financial Secretary to the Treasury, said:

“The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.”

“But 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.”

From the tax year beginning April 2024, Making Tax Digital (MTD) for Income Tax will be mandatory for businesses and landlords who have an annual income of over £10k.

If you need help preparing your business for these changes, we’re here to help. Get in touch with us at enquiries@aitaccountants.co.uk