Welcome to the October 2021 Newsletter from Beatons Group

The introduction of Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) has been delayed for a year, HMRC recently announced. The delay has been implemented in response to the challenges many businesses face as a result of the coronavirus (COVID-19) pandemic.

Meanwhile, the Institute of Directors (IoD) has called on the government to use the Autumn Budget on 27 October to reduce the planned level of business tax rises. The business group has also urged the government to help spur business investment.

Making Tax Digital for Income Tax Self Assessment delayed for a year

The government has delayed the introduction of Making Tax Digital (MTD) for Income Tax Self Assessment (MTD for ITSA) for a year, HMRC has announced.

The government says it has made the move in recognition of the challenges faced by many UK businesses as the country emerges from the pandemic.

It will now introduce MTD for ITSA in the tax year beginning in April 2024, a year later than planned.

It says the later start for MTD for ITSA gives those required to join more time to prepare and for HMRC to deliver a robust service, with additional time for customer testing in the pilot.

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 MTD and building a tax system fit for the 21st century.'

IoD urges government to reduce planned level of business tax rises

The Institute of Directors (IoD) is urging the government to use the upcoming Budget to reduce the planned level of business tax rises.

The IoD believes that the Office for Budget Responsibility (OBR) will revise its GDP growth forecasts up for 2021, potentially resulting in stronger tax receipts. It stated that as such, the need for government borrowing has lessened, giving the government 'more room for manoeuvre than previously expected'.

The business group is calling on the government to conduct and publish an assessment of the rise in employers' national insurance and to commit to taking account of the results of this assessment before the end of the 2022-23 transition period to the new Health and Social Care Levy system.

'When the national insurance increases were announced, we were surprised about the lack of analysis as to the effects of these decisions,' said Kitty Ussher, Chief Economist at the IoD.

'Parliament is being asked to agree legislation with significantly negative economic and business impacts, without having the evidence before them of the extent of that impact.'


1 October
Due date for payment of Corporation Tax for period ended 31 December 2020.

5 October
Deadline for notifying HMRC of new sources of taxable income or gains or liability to the High Income Child Benefit Charge for 2020/21 if no tax return has been issued.

14 October
Due date for income tax for the CT61 quarter to 30 September 2021.

19 October
Tax and NICs due under a 2020/21 PAYE Settlement Agreement.
PAYE, Student loan and CIS deductions are due for the month to 5 October 2021.
PAYE quarterly payments are due for small employers for the pay periods 6 July 2021 to 5 October 2021.

31 October
Deadline for submitting 'paper' 2020/21 self assessment returns.


'At the Spending Review later this year, I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.'

Chancellor Rishi Sunak commenting on the upcoming Spending Review, which will be presented alongside the Autumn Budget on 27 October.


A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.


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