Making Tax Digital for Income Tax Self Assessment - postponement

Making Tax Digital for Income Tax Self Assessment – postponement

The Government announced a two year postponement

10 Jan 2023

Just before the end of the year the Government announced a two year postponement to ‘Making Tax Digital for Income Tax Self Assessment.’ This will now be mandated from April 2026.

The Government has postponed the date for MTD for Income Tax Self Assessment because the self-employed and businesses are facing challenging economic conditions. It felt that is not right time to introduce the burden of a transition to MTD for Income Tax Self Assessment for the self-employed and small landlords, which will result a significant change for taxpayers.

The details in last month’s announcement include:

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
self-employed individuals and landlords with an income of between £30,000 and up to £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software from April 2027
It is anticipated that most taxpayers within the scope of MTD Income Tax Self Assessment will be able to sign up voluntarily before they are mandated to do so
The Government will not extend MTD for Income Tax Self Assessment to general partnerships in 2025. The government remains committed to introducing MTD for Income Tax Self Assessment to partnerships at future date, to be confirmed.
The Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. Once that review is complete – and in consultation with businesses, taxpayers, agents, and others – the Government will lay out the plans for any further roll out of MTD for Income Tax Self Assessment

Meanwhile we are working with our clients (those who are self-employed and landlords) to help them keep records digitally (in MTD-compatible formats) in preparation for the changes ahead.

If you need assistance with Making Tax Digital for Income Tax Self Assessment please contact us.

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