The government has announced some positive news for sole traders trying to recover from the Covid-19 pandemic, by confirming that it will not introduce Making Tax Digital for them until April 2024.

This digitisation of the UK tax system was originally due to be rolled out to sole traders in April 2023, and it would have seen them required to report income to HMRC each quarter, instead of once a year. The government has been facing increasing calls to push back the start date for what is being described as the largest change to the system in a quarter of a century, and it has now relented due to the pandemic.

It had been argued that introducing the Making Tax Digital changes for all sole traders that make more than £10,000 would make life more difficult for them as they try to bounce back from Covid-19. There is no question that it will add to their administrative workload, but hiring an accountant for sole traders in Goole or wherever they live to deal with it is one option some will consider.

According to Small Business, Federation of Small Businesses National Vice Chairman, Martin McTague, said in The Times that:

“This move will provide millions of sole traders with a measure of breathing space and some encouragement in a climate beset by spiralling energy costs, supply chain disruption and high levels of debt.”

Somewhere in the region of 280,000 sole traders across the UK are expected to be affected by Making Tax Digital when it comes into force.