The government has agreed to delay crucial reforms to the tax system following discussions with various professional bodies.

The secondary legislation for implementing Making Tax Digital for Income Tax Self-Assessment was published on 23rd September 2021. This included new regulations that clarify Making Tax Digital for Income Tax Self-Assessment would be implemented for both self-employed trading income and property income. The implementation however has been delayed to 6 April 2024 as oppose to 2023, this will mean that all sole trader businesses and landlords will come within MTD ITSA from that date onwards. 12 months later general partnerships will follow, it is yet to be confirmed that other types of partnerships will follow in subsequent years. The new penalty system to be introduced will also be pushed back to 2024 as oppose to the same time as MTD ITSA.

In addition to the news of the delay in MTD ITSA there was ministerial statement in regards to the basis of the reform period. The statement included that the reform will not taking place until April 2024 at the earliest hence the transition year would be in 2023/24. It is expected to be confirmed in next months budget whether the reform will be dropped completely however this is unlikely.