Following the announcement that the start date for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) has been put back from 2023 to 2024, ICAEW Chief Executive Michael Izza said:
“We are pleased that the government has listened to the concerns raised by ICAEW and the wider accountancy profession. The previous start date was far too soon and risked causing serious damage to the UK tax system. The new start date will allow businesses more time to prepare and their advisers more time to ensure their clients are ready.
“We still have concerns about the cost of implementation and the increased administration burden that some businesses may suffer, but it is nevertheless welcome news and should help to ensure a much smoother rollout.”
The announcement also included news that if basis period reform goes ahead the changes will not be introduced until the start of MTD in 2024/25. In response, ICAEW Head of Tax Frank Haskew said:
“While we still believe reform of Basis Period rules should be dropped, this is a welcome development and shows the Government is taking our concerns seriously. We are pleased that larger, more complex partnerships would not be included before April 2025 as many are internationally focused and usually adopt a year end of 31 December. Changing their Basis Period rules would result in a considerable increase in uncertainty and cost, not least because of a need to submit year-end tax figures based on estimates which will then need to be amended to reflect the actual outcome.”