The group said it believes that the proposals will put “major pressure” on businesses and advisers already reeling from the impact of the Covid-19 pandemic.
The reform of the basis period rules is due to start taking effect from April 2022. The CIOT expressed its concern that the short time frame for affected businesses will not be significant for them to make the transition to paperless reporting.
Richard Wild, head of tax technical at CIOT, said: “We strongly recommend that any changes to the basis period rules are deferred by at least a year to allow for more thorough consultation.
“We recommend that mandation of MTD for ITSA, which is currently due to start in April 2023, is also deferred to allow the basis period rules to ‘bed in’, provide adequate time for software development and testing, and again ensure businesses, agents and HMRC are prepared.”