It's approaching steadily

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords who have a qualifying income to maintain digital records and update HMRC each quarter rather than annually

For individuals, MTD for ITSA will be introduced in two phases:

•                from April 2026, for those with qualifying income over £50,000
•                from April 2027, for those with qualifying income over £30,000

Although this does not yet affect partnerships, the government remains committed to the future introduction of MTD for ITSA to partnerships.

Originally announced at Budget 2015, and following formal consultation in 2016, HMRC implemented the first phase of MTD from April 2019 for VAT-registered businesses.

Building on the successful introduction of MTD for VAT, the government announced in December 2022 that MTD for ITSA will be introduced for businesses, self-employed individuals and landlords with income over £50,000 from April 2026. Those with income over £30,000 will be mandated from April 2027.

Please come back for updates nearer the time and if you have any questions, please do not hesitate to contact us.