Another Delay to MTD for ITSA

With everything else going on at the moment you’d be forgiven for not knowing that there’s been another delay to MTD for ITSA – Making Tax Digital for Income Tax Self Assessment.

The UK Government announced that it will now start from April 2026, rather than from April 2024.

The reason for another delay to MTD for ITSA

‘The UK Government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA for the self-employed and small landlords represents a significant change for taxpayers and for HMRC.

That means it is right to take the time needed to work together to implement MTD well, maximise the benefits derived from it, and test and learn as we go.

We will continue to work to prepare for the transition to MTD for ITSA, including the testing of the service to ensure that it works for taxpayers.

I know that speculation last week may have caused you concern and frustration, and providing certainty at the earliest opportunity has been a priority for us. I hope that this update gives you further clarity.’

The details announced which may be of particular interest to you, 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 not extend MTD for ITSA to general partnerships in 2025. The government remains committed to introducing MTD for ITSA to partnerships at a later date, to be confirmed
the UK Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. This will look in detail at how the MTD for ITSA service can be shaped to meet their needs and the best way for them 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 mandation of MTD for ITSA

Get support from a Licensed Accountant

If you’re not confident about preparing and submitting your self assessment tax return or don’t have the time, getting a licensed accountant to do it for you can actually save you money. It can free up your valuable time which you can use to concentrate on your business. You can also benefit by knowing it has been done correctly and on time. Mistakes can be costly. As can missing the deadline.

Help with Getting your tax return done

If you’ve received a Notice to complete a self assessment tax return for the first time or have decided that you need some assistance, as your HMRC registered agent, I can help.