HMRC have recently announced that Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) has been delayed until 2026. Originally the roll-out was due to begin in April 2024, however, the announcement means that this has been postponed for 2 years.
The Treasury stated that “it is right to take the time needed to work together to maximise those benefits of MTD for small business by implementing gradually. The government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA represents a significant change for taxpayers, their agents, and for HMRC.”
Key information:
- There will be a 2-year delay for mandatory Making Tax Digital for Income Tax Self-Assessment filing.
- The minimum income reporting level has increased to £50,000, with those earning more than £30,000 mandated to join the scheme in 2027.
- The needs of smaller businesses (with earnings less than £30,000) will be reviewed for MTD ITSA.
- Partnerships will not be brought into MTD for ITSA as previously planned in 2025.
- There will be a points-based penalty system, which is to be extended to MTD ITSA filers when they join.
MTD for ITSA is one of the most significant changes to personal taxation in 25 years so make sure you check our website for any updates and changes.
