Live blog: MTD ITSA announcement expected todayby
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.
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.
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".
So MTD for Income Tax mandation has been put back to 2024. However that does give us time to get lots of clients into the pilot and really be ready for the mandatory start date. Don’t let up your preparations but we have more time to get businesses ready! Thanks @HMRCgovuk
Oxford professor of tax law, Judith Freedman pointed to the deferral as an example of how hard it is to reform tax.
Many people will be relieved by deferral of MTD for ITSA , but this does show just how hard it is to reform tax administration, since other changes must await this one. We need to be thinking now about 20 years hence, not just 10. https://t.co/924djBTJg6
— Judith Freedman (@JudithFreedman) September 23, 2021
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.
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.
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.
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.
What do you expect to hear from the announcement today?