Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) set to be postponed to 2026

MTD for ITSA was originally scheduled for April 2024, but it has been announced that the programme to digitise the UK tax system will be pushed back to 2026.

Therefore, self-employed individuals and landlords will have more time to prepare for MTD for ITSA, following a government announcement made today.

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 £50,000 will need to do this from April 2027. Most customers will be able to join voluntarily before these dates.

The Government has also announced a review into the needs of smaller businesses, i.e. those under the £30,000 income threshold.

It was also revealed that mandation of MTD for ITSA will not be extended to general partnerships in 2025 as previously announced.