The government has delayed the introduction of its digital tax changes for income tax until April next year.
The Making Tax Digital initiative means that businesses and landlords with a business income over £10,000 per year will need to keep digital records and update HMRC quarterly using government software.
The delay will give businesses more time to prepare for the changes and will allow HMRC to “deliver a robust service”.
It will also allow more time for pilot testing which is already underway and will be expanded in 2022 and 2023 tax year. Large scale testing is slated for 2023 and 2024 tax year.
General partnerships will not be required to make digital tax changes until April 2025 and an updated penalty system will also come into effect from April 2024.
Lucy Frazer, financial secretary to the Treasury, said: “The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.
“But we recognise, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change which is why we’re giving people an extra year to do so.”
She added that the government was “firmly committed” to the scheme and “building a tax system fit for the 21st century”.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.