Making Tax Digital for Income Tax (MTD for ITSA)
Government’s plans to make it easier for individuals and businesses to get their tax right. Self-employed businesses and landlords will need to follow the rules for MTD for Income Tax from their accounting period starting on 6 April 2026 which is delayed by a further two years. (it was due to apply from the 6 April 2024). It was announced onn 19 December. It will introduce over few phases, the date dependent on the taxpayer’s income: From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be require to follow MTD for ITSA. Those income of between £30,000 and up to £50,000 will be require to follow from April 2027. The Government will review the needs of smaller businesses and individuals those under the £30,000 before making any decision on the further mandation of MTD for ITSA. Its require Digital record keeping (Excel or Software) and the information required to submit quarterly update and end of period statement. The government has announced that if your total gross income from self-employment and property is over £20,000, you’ll need to use Making Tax Digital for Income Tax in the future. We’ll set out the timeline for this at a later date.
