NEWS FLASH!:

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA)

is Delayed Until 2026

The mandating of MTD for ITSA is now planned to be introduced from April 2026, with businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first.

An increase in the income threshold from £10,000 to £50,000 is universally welcome.

Although, the new £50,000 threshold is only a temporary reprieve. This will be reduced to £30,000 from April 2027 with those below that threshold being kept under review.

Also under review is the fate of partnerships whose inclusion has been deferred from April 2025 to an as yet unknown future date.

It was also confirmed that the new MTD penalty regime, coming into force for VAT from 1 January 2023, will come into effect from April 2026 for those falling within MTD for ITSA. The Government will also look to apply this same penalty regime to all income tax payers, including those falling outside of MTD for ITSA, although no implementation date was stated for this.

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