Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is part of the Government’s drive
to digitalise the tax system. From April 2024 self-employed business owners and landlords were
mandated to report earnings quarterly and to pay Income Tax using MTD compatible software
specifically developed for the purpose. Last year, this date was pushed back to April 2026.
Subsequently, self employed individuals and landlords with an income of more than £50,000 a year
will have to comply with MTD for ITSA from that date. Those with income greater than £30,000 a
year will have to comply with the rules from April 2027.
Businesses registered for VAT may already be acquainted with the principles of Making Tax Digital,
having kept digital records and submitted their VAT returns using HMRC approved software as part
of MTD for VAT.
Although MTD for ITSA is now not due to be introduced until April 2026, having been deferred, it is
advisable to act now to prepare for its introduction.
Should your projected gross income from trading or/and property letting activities, chargeable to
Income Tax and Class 4 NICs, exceed £50,000 for the 2026/2027 tax year, and you want to be
prepared for MTD for ITSA, please send us an email to arrange a free, without obligation
introductory meeting. Those with a lower income may also wish to voluntarily sign up.
Further information may be found at: –
https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax