On 23rd September, HMRC announced that businesses will get an extra year to prepare for the digitalization of the Income Tax.
The decision to introduce MTD after the year of its initial release for Income Tax Self-Assessment is due to the pandemic where many of the businesses and their representatives faced some challenges and also having listened to stakeholder feedback.
This will not only give more time for the businesses who were not prepared but also to the HMRC who can then deliver a robust service with additional time for customer testing in the pilot.
MTD is the first phase or part of the government’s ambition as they want to be one of the most digitally advanced tax authorities in the modern world. This will help the businesses through their digitalization journey and will also provide a digital service to the many who were expecting in their everyday lives.
For more info, click https://www.gov.uk/government/news/businesses-get-more-time-to-prepare-for-digital-tax-changes
