Self-employed individuals and landlords across the UK, have been preparing for Making Tax Digital for Income Tax which was due to take effect from April 2024. This would have required individuals with income over £10,000 to report earnings quarterly through an online platform.
However following on from a recent announcement, this has now been delayed for two more years until April 2026. The requirements for MTD for ITSA have also changed.
Victoria Atkins, Financial Secretary to the Treasury explains the decision; “The government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA represents a significant change for taxpayers, their agents, and for HMRC.”
To see if your business meets the new requirements for MTD for ITSA, please click here.
Despite the change, we are working with our clients daily to digitalise their accounting systems. If you would like assistance with the migration from paper records to an online accounting software today, we are here to help and would love to guide you through the journey.