One of the biggest upcoming changes for many self-employed UK workers and the tax planning accountants that work with them was set to be the Making Tax Digital scheme.

However, as per statements in parliament, updated legislation and a modified policy paper, the implementation of the new requirements has been postponed, with the proposed starting dates for self-assessment being pushed back.

Making Tax Digital is a scheme that requires businesses (currently only VAT-registered businesses over the £85,000 registration threshold) to submit their tax returns digitally using “functional compatible software” and store these records digitally.

They are also required to keep digital income and expenditure records and send a summary of income and expenses as well as a yearly report using compatible software and not the government’s own website.

MTD initially launched in 2019 for businesses over the registration threshold but was intended to be expanded for sole traders, partnerships and landlords who submit taxes via self-assessment over the next two years.

This is despite a lack of support or access to free software for small businesses where every penny can mean the difference between survival and liquidation.

Whilst the implementation of MTD for all VAT-registered businesses is still set to take place in April 2022, the requirement has been delayed until April 2024 for sole traders/landlords who have business and property income over £10,000 in a year, and April 2025 for general partnerships.

The stated reason for the change is the disruption caused by the last two years, as well as a response to “stakeholder feedback”.

As for complex partnerships and businesses that pay Corporation Tax, there are currently very few updates, suggesting that the earlier somewhat vague ministerial statement that Corporation Tax will not be subject to MTD until at least 2026.