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Live blog: MTD ITSA announcement expected today

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The full and final MTD ITSA regulations are expected to be published on HMRC's website today. Track the latest rumours and news throughout the day on AccountingWEB.  

23rd Sep 2021
Editorial team AccountingWEB.co.uk
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AccountingWEB is monitoring all the rumours, leaks and news ahead of the expected release of the eagerly anticipated MTD ITSA news later today.

Will the full regulations be published or just partial regs? Will there be delay? How will it affect accountants and vendors? We'll be keeping our live blog updated with the latest news and gossip.

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Reaction to the MTD delay news

News that MTD ITSA has been pushed back to April 2024 is making its way around the tax community.  

Rebecca Benneyworth has encouraged tax professionals to not "let up on their preparations".  

Oxford professor of tax law, Judith Freedman pointed to the deferral as an example of how hard it is to reform tax. 

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BREAKING: MTD ITSA delayed until 2024

The government has delayed the roll out of MTD ITSA until April 2024. The new financial secretary to the Treasury Lucy Frazer announced in a written statement:

"The Government recognises the challenges faced by many UK businesses and their representatives as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, we will now be introducing MTD for ITSA a year later, in the tax year beginning in April 2024." 

She also confirmed that general partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025.

Stay tuned to AccountingWEB for more on this story as it develops.  

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Sunak to make an announcement this afternoon

Chancellor Rishi Sunak is set to deliver a written statement to the House later this afternoon on Making Tax Digital.

As confirmed on the Parliament's summary agenda, Sunak will announce the update along with news on an agreement between the British Trade and Cultural Office, Taipei and the Taipei Representative Office in the United Kingdom and the UK National Risk Assessment of Proliferation Financing. 

Sunak

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HMRC was tight lipped on the regulations at Accountex

HMRC representatives attended Accountex this week and were confronted with questions on landlords, basis periods and free commercial software. A lot of these unresolved questions were deferred until the regulations were released in "the autumn".

AccountingWEB's Jake Smith reported from the Central Manchester Convention Centre:

"One thing that was left hanging was the question of whether there would be a delay to MTD for ITSA. Whilst a potential delay was neither denied nor confirmed, there was at least acknowledgement from HMRC that the simultaneous implementation of both MTD for ITSA and potential basis period return would be challenging. Delay or no delay, the message was clear: MTD will be happening."

Another big question coming out of the event was around free commercial software. However, there was also a promise that there will indeed be free software from commercial software providers for those “with the simplest tax affairs”.  

Read the full report here.

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MTD legislation day!

TaxCalc's Dean Shepherd kicked the rumour mill into drive this morning with the news that MTD regulations will be released today. 

LInkedin

 

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What do you expect to hear from the announcement today? 

Replies (19)

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By Hugo Fair
23rd Sep 2021 13:05

What is Dean Shepherd pouring over the MTD regs? And does he expect to help or hinder its vitality?

Thanks (4)
By SteveHa
23rd Sep 2021 13:16

Humph. HMRC vanity project, regardless of whether it will work, or achieve anything. When did HMRC become more about vanity than compliance with the legislation.

Thanks (1)
By ireallyshouldknowthisbut
23rd Sep 2021 13:29

Will it raise any more tax? No chance
Will it save us any time? No - far more time to pay the same tax.
Will it save HMRC any time? No - the extra support will be phenomenal, plus all the manual workarounds
Will it happens anyway? Yes.

Thanks (2)
Replying to AdamMurphy:
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By Hugo Fair
23rd Sep 2021 14:17

And right at the end ...
"The Government has also recently consulted on a reform of the complex basis period rules that govern how self-employed profits are allocated to tax years.
Many respondents said that the reform was a sensible simplification but asked for more time to implement the changes.
In recognition of these concerns, these changes will not come into effect before April 2024, with a transition year not coming into effect earlier than 2023.
The Government will respond to the consultation in due course providing the next steps."
When's the next General Election?

Thanks (2)
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By deanshepherd
23rd Sep 2021 13:56

Delayed until 2024 for individuals, delayed until 2025 for partnerships.

Not sure where that leaves companies, 2030?

Thanks (1)
Replying to deanshepherd:
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By AdamMurphy
23rd Sep 2021 13:58

Shame memes can't be posted on here. We need the one with the old Rose from Titanic saying "It's been 84 years..."

Thanks (0)
Replying to deanshepherd:
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By Paul Crowley
23rd Sep 2021 14:17

HM Gov are Carp
The delay is the wrong way round
Partnerships are a tiny number and much more capable given that many already registered for VAT
The extra costs not significant and shared amongst several people
Or is it the case that HMRC cannot cope and have no partnerships in the pilot
I only have 8 partnerships and all of them could probably claim age and digitally excluded

Thanks (1)
By Charlie Carne
23rd Sep 2021 14:24

So does this delay mean that they now have time to change the tax year-end to 31st March at the same time as changing the basis period rules. That would be a very welcome simplification.

Thanks (0)
Replying to North East Accountant:
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By AdamMurphy
23rd Sep 2021 14:49

Beat you at 13:48 ;-)

Thanks (0)
Replying to AdamMurphy:
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By North East Accountant
23rd Sep 2021 14:58

Indeed you did.... sorry I missed this.

Gold medal to you sir.....I'll have to settle for silver.

Thanks (0)
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By 0098087
23rd Sep 2021 14:40

Another year to win the lottery or pools and walk away from this shower of [***].

Thanks (2)
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By 0098087
23rd Sep 2021 15:08

just wait to hear of the universal credit back track next week as well

Thanks (1)
Replying to 0098087:
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By AdamMurphy
23rd Sep 2021 15:37

May came on "dancing" to Dancing Queen.

Johnson needs "You Spin Me Right Round"

Thanks (1)
Replying to AdamMurphy:
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By Hugo Fair
23rd Sep 2021 15:46

Or for those with longer memories (all the way back to 1968):

What goes up must come down
Spinning Wheel got to go 'round
Talkin' 'bout your troubles
It's a cryin' sin
Ride a painted pony
Let the Spinning Wheel spin

You got no money, you got no home
Spinning Wheel all alone
Talkin' 'bout your troubles and you
You never learn
Ride a painted pony
Let the Spinning Wheel turn

Thanks (1)
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By bluebaron
23rd Sep 2021 15:49

Good. I'm pleased with every year that it can be delayed, still wish it could be abandoned altogether though!

Thanks (3)
Replying to bluebaron:
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By AdamMurphy
23rd Sep 2021 19:17

Seeing as the original idea was touted in 2015, it more or less is being cancelled. Sorry, delayed.....

Thanks (0)
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By djames
24th Sep 2021 12:49

Get In! Early retirement for 2024 is a possibility, before that would have been a struggle. Hopefully I can now retire before the world turns upside down (or at least downsize to the few clients I can reasonably steer through it).

Its the least I deserve after the last 18 months of 'limited service' (i.e. none) from HMRC and the flat spot I've gained on my head from constantly banging it against a brick wall. I suppose it's too much to also ask for HMRC to return to normal hours and service (as poor as that was, it was better than deafening silence).

Thanks (1)