The new regulations for MTD – what has changed

Last month the government announced a year’s delay to April 2024 for the adoption of making tax digital (MTD) for income tax self assessment (ITSA).

Curiously there was no mention of MTD in chancellor Rishi Sunak’s budget speech on 3 March 2021 nor was it specifically mentioned in the accompanying Red book. However the tax day announcements on 23 March included the publication of a call for evidence on modernising the tax administration framework.

That document explained how central to the stated vision of creating ‘a tax system fit for the challenges and opportunities of the 21st century’ was a fully digital tax system that was able to support all the needs of taxpayers. It also acknowledged that change was needed to support taxpayers better as they began to interact with HMRC digitally. Suggested opportunities for reform included an examination of the role of...