Cookies on the Attwoods website

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the Attwoods website.

Open

Latest news

Explore insightful perspectives and expert advice on finance

Home |Latest news |Treasury estimates MTD for Income Tax deferral will cost over £1.75 billion

Latest news

Browse by category
Business News

Treasury estimates MTD for Income Tax deferral will cost over £1.75 billion

March 21 2023

Figures released in the Spring Budget documents have revealed that the deferral of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will cost the Exchequer more than £1.75 billion.

The Financial Secretary to the Treasury previously announced that the £10,000 turnover threshold for MTD for ITSA will increase to £50,000 from April 2026 and £30,000 from April 2027. Meanwhile, the mandation date for partnerships was pushed back from April 2025 to a later date.

The Budget figures suggest that the cost of these changes will total £1.75 billion.

Reviewing the figures, the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) stated that MTD for ITSA's benefits may have 'begun to flow more quickly' if the government had consulted stakeholders earlier and worked more closely in partnership with them.

Commenting on the issue, Alison Hobbs, Chair of the joint CIOT and ATT Digitalisation and Agent Strategy Committee, said: 'The announcement to defer the implementation of MTD for ITSA, and subsequently introduce it in a staged manner, was clearly the correct one. The incredibly limited testing, combined with significant problems still to be resolved, meant that this delay had to happen. However, according to government figures, the cost is clearly substantial.'

Here to help

Please complete the form below and our expert team will be in touch.

  • Contact details

    • *
    • *

  • What services are you interested in?

    • *

  • Message

    • *

  • Which location would you like to contact?

  • Communication

    • *Indicates a required fields.†At least one form of contact is required.

      By submitting this form, you agree that Attwoods can process your information in order to respond to your enquiry. For more information visit our Privacy Policy.

Bromsgrove
Bromsgrove

Attwoods is proudly based in the historic market town of Bromsgrove, Worcestershire

  • 182 Worcester Road
  • Bromsgrove
  • Worcestershire
  • B61 7AZ
Call us01527 874170
Learn more about BromsgroveGet in touch
Evesham
Evesham

Attwoods is proudly based in the picturesque town of Evesham, Worcestershire; nestled in the heart of the Vale of Evesham

  • 90-92 High Street
  • Evesham
  • Worcestershire
  • WR11 4EU
Call us01386 424388
Learn more about EveshamGet in touch
Pershore
Pershore

Attwoods is proudly based in the Georgian market town of Pershore, Worcestershire.

  • Perrott House
  • 17 Bridge Street
  • Pershore
  • Worcestershire
  • WR10 1AJ
Call us01386 554870
Learn more about PershoreGet in touch
  • Xero Logo
  • Gold Partner Logo
  • Sage
  • QuickBooks Platinum

The practices of Attwoods are carried on by Attwoods Accountants Limited, Attwoods Business Services Limited, Attwoods (Bromsgrove) Limited. Regulated for a range of investment business activities by the Association of Chartered Certified Accountants.