Businesses have been granted an extra year to prepare for the implementation of Making Tax Digital, HMRC announced last week.
In the aftermath of the COVID-19 pandemic, HMRC worked with stakeholders to understand the challenges many UK businesses have faced.
Following this process, the government will introduce Making Tax Digital for Income Tax Self Assessment from April 2024, a year later than initially planned.
The delay is intended to offer businesses more time to prepare and HMRC the opportunity to conduct further testing.
Making Tax Digital is the first phase of a move towards a modern, digital tax service.
Lucy Frazer, financial secretary to the treasury, said: "The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.
"But we recognise that, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change, which is why we’re giving people an extra year to do so.
"We remain firmly committed to Making Tax Digital and building a tax system fit for the 21st century."
Parkers Accountants managing director Philip Ford was involved in the process of developing Making Tax Digital through his role with the Association of International Accountants.
"I am able to balance my role as an accountant with other roles, and I am a council member and the chairman of qualifications at the Association of International Accountants," he told The Parliamentary Review.
"I am also the vice president of the organisation. I have been involved in the Making Tax Digital programme from its very first day and am the representative member of the AIA at the Joint VAT Consultative Committee at the Treasury in London."
Parkers Accountants is a medium-sized accountancy firm that offers services including bookkeeping, business advice, self-assessments, and accounts preparation.
Working with more agility than many of its rivals, Ford explained why its services can help clients make the best decisions possible.
"Parkers Accountants is one of the few firms that complete its clients’ accounts within two to four weeks of the end of the accounting reference date," he added.
"Therefore, the information provided to clients is topical and helpful for business owners to make financial decisions."
