Digital tax switch delayed until 2024

The Government has pushed back plans to digitalise the tax system for sole traders with annual income over £10,000.

The delay means freelancers will not need a digital tax account until April 2024, when HMRC are expected to introduce quarterly payments.

The proposed tax regime could cause freelancers to pay up to two years’ tax at once and has been met with concern from the creative sector.

Financial Secretary to the Treasury Lucy Frazer said the Government’s decision was due to “stakeholder feedback”.

Tax advisor Guy Sterling called the delay as a “general hurrah” for freelancers.

“Perhaps the lobbying worked, or HMRC hasn’t got the software quite ready [but] creative industry freelancers will be delighted with this prudent decision.”