MTD ITSA delayed to April 2026
The government announced the date for Making Tax Digital will be changed to April 2026 rather than April 2024.
The UK government is aware of how difficult the current economic environment is for both business and the self-employed and has taken appropriate measures to alleviate some of these burdens. That means it is right to take the time needed to work together to implement MTD well and maximise the benefits derived from it, testing and learning as we go.
We're still working with you to help prepare for MTD and ITSA over the next few weeks by testing to see if it's working smoothly for everyone., by continuing to support our clients keeping digital records and preparing them to sign up ahead of mandate.
From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required 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 starting from April 2027.
We think that most taxpayers within the scope of MTD for ITSA will be able to sign up voluntarily before they're mandated to do so. The process won't include general partnerships in the UK by 2025.
The government remains committed to introducing MTD for ITSA to partnerships at a later date, which is to be confirmed. The UK Government are reviewing the needs of businesses under £30,000 and will then make further decisions.
This will explore in detail at how the MTD for ITSA service can be shaped to meet business owner’s needs and the best way to fulfil their Income Tax obligations. Once that review is complete – and in consultation with businesses, taxpayers, agents, and others – the UK Government will lay out the plans for any further mandate of MTD for ITSA.
It is our mission to ensure if you fall into this category, you are confident and prepared before the live date.
Contact us for a free consultation to discuss how MTD may affect your business.
We are here to support you!