Basis period reform and MTD: Financial Secretary to the Treasury replies to ATT letter

The new Financial Secretary to the Treasury, Lucy Frazer MP, has responded to out letter regarding proposed reform of the basis period rules and their interaction with the introduction of Making Tax Digital for Income Tax Self-Assessment (‘MTD for ITSA’).

The ATT, along with other professional bodies, originally wrote to the Financial Secretary to the Treasury's predecessor, Jesse Norman MP, setting out our concerns over the proposed timetable for these changes, highlighting that a rush to implement them too quickly, especially on the back of Brexit and the pandemic, risked undermining the integrity of the tax system. 

In her response, the Financial Secretary to the Treasury acknowledges these concerns, noting that mandation of MTD for ITSA will be delayed by one year to April 2024, with potential basis period reforms also delayed.  The letter thanks the professional bodies for their support and advice to date, and expresses a desire to continue to work in partnership with them and the wider stakeholder community to ensure that the transition to MTD for all customers is as smooth as possible.

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