Tax administration

Making tax digital (MTD) for income tax self-assessment (ITSA)

As announced in September, sole traders and landlords, who have annual income over £10,000 will be given an extra year to prepare for MTD.

MTD for ITSA will now be introduced from 6 April 2024. General partnerships will not be required to join MTD for ITSA until 6 April 2025.

Reform of penalties for late submission and late payment of tax for ITSA 

As announced in September, the new regime of penalties for the late filing and late payment of tax for ITSA will now come into effect on 6 April 2024 for those taxpayers required to submit digital quarterly updates through MTD, and 6 April 2025 for all other ITSA taxpayers.

Clamping down on promoters of tax avoidance 

The government will introduce further measures to clamp down on promoters of tax avoidance. The package of measures, which will take effect following Royal Assent, will:

  • allow HMRC to freeze a promoter’s assets so that they pay the penalties they are liable for;
  • deter offshore promoters by introducing a new penalty on the UK entities that support them;
  • provide for the closing down of companies and partnerships that promote tax avoidance schemes; and
  • support taxpayers to steer clear of avoidance schemes or exit avoidance schemes quickly, by sharing more information on promoters and their schemes.

Tax administration and maintenance announcements

A further set of tax administration and maintenance announcements will be issued later in the autumn. This follows a similar set of announcements published in the Command Paper Tax policies and consultations (Spring 2021).