We are always banging the drum for digital accounting and all the positives it can bring to your business. We’ve also explained the regulatory requirements along the way, so you can ensure you are prepared and confident when the latest HMRC changes come into force.
Recently, we highlighted how the changes would impact small businesses and in this latest article we look at the changes for self-employed individuals and what you need to be prepared for in the coming months and years.
HMRC are introducing a new way for self-employed and individuals receiving property income over £10,000. This is called Making Tax Digital for Income Tax (or MTD ITSA).
This new legislation comes into force in April 2026 for some individuals, after a push back from the original proposed date of April 2024, but there is an option to sign up early to help test the scheme and ensure you are confident in how it works ahead of its implementation.
The aim of this latest MTD update is to bring income reporting into the digital age and to compliment the use of digital banking, cloud accounting software, and online record keeping.
The criteria for those self-employed individuals and landlords to sign up for April 2026 changes are:
If you fit the above criteria you will need to sign up for MTD ITSA, and you’ll need to have qualifying software for reporting ready for April 2026.
At Whyfield, we will be working with our clients to help them understand the new requirements and support them through this transition as we have done with our clients for MTD (Making Tax Digital) for VAT.
MTD ITSA will be here before we know it. We want to empower you to understand what the changes mean for you and help guide you through a digital tax revolution, and over the next two years, we want you to be ready for the implementation of the new mandatory requirements.
Unsure of what the changes mean for you?
Get in touch with us to chat about it.