Experts at Dyke Yaxley have welcomed the news that two major tax rule changes will now be deferred.
The Government has announced the starting point for changes to the tax year for trading income for unincorporated businesses will not come into effect before April 2024.
And the Making Tax Digital project will be introduced a year later than originally planned too, with the date also moved to April 2024.
Francesca Hutcheson, Tax Director here at Dyke Yaxley Chartered Accountants, says the deferrals were good news for both taxpayers and advisers.
“The deferrals have been announced by the Government as they recognise the challenges UK businesses and their representatives have faced as the country emerges from the pandemic.
“They have listened to stakeholder feedback, and slowed down the changes so that taxpayers and their advisers now have more time to prepare for the new rules which are both significant and complex.”
Francesca says the full commencement of the tax year basis for trading income for unincorporated businesses was delayed until 2024, with a transition year not coming into effect earlier than 2023.
“Pushing back the date of the Making Tax Digital for Income Tax Self-Assessment scheme is welcome news for businesses and landlords with a business income over £10,000 per year.
“General partnerships will not be required to join MTD for Income Tax Self-Assessment until April 2025, and the dates when other types of partnership will be required to join have yet to be announced.
“Clearly as businesses begin to recover after the devastating effects of Covid-19, they will need help and support in order to restructure and adjust their operating procedures accordingly,” said Francesca.
“News that such substantial tax rule changes will be pushed back can only be helpful as there’s more time for everyone to seek the professional advice they need to ensure they are ready for the new-look regulations.”