MTD ITSA will not become mandatory for those it will affect until at least April 2026.
The Treasury has bowed to urgent calls to delay from various professional bodies, such as tax practitioners and software companies.
These bodies have insisted that the UK is not ready for MTD ITSA to be introduced in its current form by the planned date of 1 April 2024 – less than two years’ time.
Adjustments to the scheme
The financial secretary to the Treasury Victoria Atkins released a ministerial statement this morning detailing the new adjustments to the scope and timescales of MTD ITSA in addition to the two-year delay.
- The minimum income reporting level has been increased to £50,000, with those earning more than £30,000 not obligated to join the scheme until 2027.
- The situation for landlords and sole traders earning less than £30,000 will be reviewed and a decision will be taken later on when they should start filing via MTD.
- A points-based penalty system will be extended to MTD ITSA filers when they join the scheme.
If we receive any more information on this topic, we will be sure to update you further.
But for now it appears we have all received a reprieve regarding the preparations for the new requirements.
Contact us today if you have any queries.