Following a government announcement today (19/12/22), self-employed individuals and landlords have been given more time to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), as it has been officially postponed. It will now be phased in from April 2026, rather than April 2024.
From April 2026, Self-employed individuals and landlords with an income of £50,000 or more will be mandated to keep digital records and provide quarterly updates on income and expenses to HMRC through MTD-compatible software. They will then receive an estimated tax calculation to be able to better budget for this tax. At the end of the year, the accounts will then be finalised and sent in the software to HMRC, replacing the current Self Assessment Tax Return.
Individuals and landlords with an income between £30,000 and £50,000 will need to do this from April 2027.
It was previously determined that individuals and landlords with an income of £10,000 and over will have to comply with MTD. This is now being reviewed for the £10,000 - £30,000 bracket, though any rollout will now happen after April 2027.
If you have any questions on the rollout of MTD ITSA, please let us know!
Comments