HM Revenue & Customs had already delayed Making Tax Digital for self-assessment until April 2024, but this week the date was been pushed back again to April 2026.
According to the Treasury, this is to “maximise the benefits”. Victoria Atkins, financial secretary to the Treasury said “It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.
“Smaller businesses in particular should be able to experience the benefits of increased digitalisation of Income Tax in a way which meets their needs.,”
This postponement means that the mandatory use of software is now being phased in from April 2026, rather than April 2024.
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.
MTD for ITSA will apply to individuals’ annual income of more than £10,000. Most businesses will have two years to prepare and test the service voluntarily prior to its introduction. Businesses with income over £30,000 will be mandated to comply with MTD ITSA from April 2027.
It was originally planned that MTD ITSA would apply to partnerships from April 2025. This will no longer happen, but the government intends to introduce MTD ITSA for partnerships at a later date.
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The information was correct at time of publishing but may now be out of date.
