Tax advisers are calling on the government to delay the introduction of the Making Tax Digital for income tax self assessment (MTD for ITSA) system, according to the findings of a survey.
From April 2024, all self-employed individuals and landlords with income over £10,000 will have to report earnings quarterly through the MTD for ITSA system.
The survey by the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) found that 97% did not think that MTD for ITSA, in its current form, could be introduced successfully from April 2024.
There were widespread concerns around the proposed launch of the new requirement in 16 months’ time, and tax experts recommended pausing the roll-out to allow time for further consultation.
A third of tax experts said that the report system should continue on a voluntary basis initially, but with a significant increase to the £10,000 minimum threshold.
Nearly half of respondents thought that the MTD extension should be paused and consultation undertaken on its future.
Alison Hobbs, Chair of the joint CIOT and ATT Digitalisation and Agent Strategy Committee, said: ‘These results confirm what we, and others, have felt for some time. The incredibly limited testing, combined with there being some key problems still to be resolved, means that HMRC must announce that the April 2024 start date is to be pushed back.
‘It is vital that these new processes are fully tested and deliver the intended benefits before they become mandatory.’
|Need help with your accounts? Please do not hesitate to contact us.