The government has announced on 23 September 2021 it would be further delaying the introduction of Making Tax Digital for businesses and landlords, with business income of more than £10,000 by a year, to April 2024. It also delayed its introduction for general partnerships by a year to April 2025.
In July 2021 it published a consultation on reforms to simplify how the profits of unincorporated businesses (including trading partnerships – but not LLPs) are subjected to income tax, including draft legislation, with a view to introducing the transition from the 2022/23 tax year. However, this has also been delayed with current thinking being that, if it is introduced, this will be aligned with the introduction of Making Tax Digital (meaning 2023/24 would be the transitional year).
We may learn more in the upcoming budget on 27 October and, as always, we will keep you updated as soon as we know more.
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