Yesterday, the UK Government announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be pushed back 2 years, starting from April 2026, rather than from April 2024.

The proposed transition to MTD for ITSA for the self-employed and small landlords represented a significant change for taxpayers with the outline of quarterly submissions through cloud accounting software.

We will continue to work with our clients to prepare for the 2026 introduction to MTD for ITSA by helping them set up and keep digital records and preparing them to sign up ready for mandation.

The details of MTD for ITSA announced yesterday include:

  • From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required (mandated) to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software
  • Those with an income of between £30,000 and up to £50,000 will need to do this from April 2027
  • The UK Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions.

If you have any questions on this latest announcement, please contact the office and speak to one of the team.

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