Making Tax Digital for Income Tax Delayed

In a move that will be welcomed, The Financial Secretary to the Treasury, Victoria Atkins, has today announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will be delayed until April 2026.

MTD for ITSA will require self-employed individuals & landlords to make quarterly digital submissions of income & expenses to HM Revenue & Customs.

The income threshold will also be increased so that initially only self-employed individuals & landlords with income over £50,000 will be required to join. This “income” figure is gross income before deducting any expenses. If an individual has both self-employment income & rents, the limit will be tested against their combined income from both sources.

Individuals with self-employment income/rents of more than £30,000 will be required to join from April 2027.

Individuals can still sign up for the MTD for ITSA pilot before April 2026 if they wish.

The full announcement can be read here: https://questions-statements.parliament.uk/written-statements/detail/2022-12-19/hcws465

If you have any questions, a member of our tax team would be happy to help. Give us a call on 01246 274121 (Option 2) or drop us an email: taxteam@mitchellsaccountants.co.uk