ICAEW's Tax Faculty's provides a summary of the announcements on Making Tax Digital in the Spring Budget 2021.
Budget 2021 confirmed that FB 2021 will introduce the necessary changes to implement the previously announced extension of MTD for VAT to all VAT registered businesses from April 2022.
A revised estimate of costs has been published. One quarter of the businesses affected have already signed up to MTD for VAT voluntarily.
No further announcements were made on MTD for income tax self assessment (MTD ITSA); the regulations and revised cost estimates are expected to be laid before parliament shortly.
The government has recognised that the need for business to adopt digital technology is wider than tax. In Autumn 2021, a new scheme to help businesses adopt productivity enhancing software will be launched, covering up to half the costs of approved software up to a maximum of £5,000.
The scheme, known as Help to Grow: Digital, is expected to help 100,000 SMEs and will offer advice through an online platform and may help businesses preparing for MTD ITSA and MTD for corporation tax.
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More on Budget 2021
Read the rest of the Tax Faculty's summary of the tax related announcements in the Budget on 3 March 2021.
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