Making Tax Digital (MTD) for Self Assessment (ITSA)

We sighed with relief to hear the announcement MTD ITSA is now to be delayed to April 2026 and April 2027 for ‘businesses’ with turnover exceeding £50,000 and £30,000 respectively. We have mixed feelings about yesterday’s announcement from HMRC about the delay to MTD ITSA. We have spent significant amounts of time behind the scenes preparing to announce and help our clients through the biggest overhaul to the tax reporting system in our careers. MTD ITSA was due to be implemented from April 2024 for ‘businesses’ with income exceeding £10,000.

Following fierce lobbying by accounting and tax professional bodies, the UK Government have announce today that they understand businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD ITSA for the self-employed and small landlords represents a significant change for taxpayers, agents and for HMRC. Some may say the reality is that HMRC are just facing significant delays as a result of Covid and pre-Covid!

We will continue to work behind the scenes to prepare for the transition to MTD ITSA and gradually help all of our clients to keep digital records and prepare them ahead of mandatory implementation.