Making Tax Digital (MTD) ITSA Postponement

Making Tax Digital (MTD) is one of the latest initiatives taken by HM Revenue and Customs (HMRC). They plan to digitalise the tax system in the UK to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.

 It will also help to reduce the tax gap by requiring businesses and individuals to:

  • Keep digital records
  • Use software that works with MTD
  • Submit updates every quarter, bringing the tax system closer to real-time

In December 2022, HMRC announced that the start date for MTD Income Tax Self Assessment (ITSA) for sole traders and landlords that earn £50,000 or more is to be pushed back until April 2026 instead of 2024. Although this may be a relief for the taxpayers affected, it is also an opportunity to begin preparing yourselves for the process so the transition is as smooth as possible.

MTD ITSA Timeline

  • MTD ITSA will be mandatory for self-employed individuals or landlords that earn £50,000 or more by April 2026.
  • Self-employed individuals or landlords that earn between £30,000 and £50,000 will be required to meet the MTD ITSA requirements by April 2027.
  • HRMC is in the process of reviewing the implementation of MTD ITSA for individuals that earn less than £30,000.

Bush & Co are here to help with your digital record-keeping needs, please contact us for more information by calling 01392 432525 or emailing [email protected]


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