Making Tax Digital for Income Tax Self-Assessment delayed

23 December 2022

HM Revenue and Customs (HMRC) has been preparing for an April 2024 release of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). However it has been announced that this has been delayed for a further two years and will be a phased introduction.

The mandatory use of MTD for ITSA software will be phased from April 2026, with self-employed individuals and landlords with an income of over £50,000 joining first. They will need to keep digital records and provide quarterly updates on their income and spending to HMRC through compatible software. Those with income between £30,000 and £50,000 will need to comply from April 2027.

A review has been announced into how MTD for ITSA can be adapted to meet the needs of those under the £30,000 threshold. This review will look at the needs of these smaller business and lay out the approach to the roll out after April 2027.

MTD for ITSA will also not be extended to general partnerships, as had previously been announced.

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