{"id":24438,"date":"2023-02-21T09:27:06","date_gmt":"2023-02-21T09:27:06","guid":{"rendered":"https:\/\/smh.group\/?p=24438"},"modified":"2023-02-21T09:27:06","modified_gmt":"2023-02-21T09:27:06","slug":"making-tax-digital-for-income-tax-deferred","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/making-tax-digital-for-income-tax-deferred\/","title":{"rendered":"Making Tax Digital for income tax deferred"},"content":{"rendered":"

During the non-news week before Christmas, there was a significant announcement on the Making Tax Digital (MTD) scheme for income tax. <\/strong><\/p>\n

In recent months, you could be forgiven for thinking that the infrastructure of UK plc was falling apart. One element of the general malaise that received less publicity than it arguably deserved was an announcement from the Treasury about HMRC\u2019s tax technology masterplan, MTD.<\/p>\n

The idea of MTD started in 2015, when the then Financial Secretary to the Treasury promised that, \u201cBy 2020, HMRC will have moved to a fully digital tax system where bureaucratic form-filling is eradicated \u2013 taxpayers should never have to tell HMRC information it already knows.\u201d Three years beyond that target date, and six financial secretaries later, the plan has not quite lived up to expectation.<\/p>\n

A key feature of MTD is that taxpayers are required to submit quarterly returns digitally to HMRC. As VAT was already subject to quarterly reporting, it was the first tax to come within MTD system in April 2019. Until the pre-Christmas announcement, MTD had been due to be extended from April 2024 to landlords and self-employed individuals with gross annual income of more than \u00a310,000. Most general partnerships with income over \u00a310,000 were due to join a year later.<\/p>\n

On 19 December, two days before the House of Commons went into recess, the current Financial Secretary to the Treasury issued a written statement announcing that:<\/p>\n