Making Tax Digital Update

The government has announced a further delay to the introduction of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA).

Why and what’s the new timeframe?

The initial plan

Originally MTD ITSA was going to be mandatory for the self-employed/landlords earning over £10,000, starting April 2024.

The change would have meant mandatory reporting of income on a quarterly basis using MTD approved accounting software.

Poor timing

In a statement released on 19 December, the government has finally acknowledged that MTD ITSA is a significant change for all concerned, and that launching during an economic crisis is not ideal.

Proposed timeframe

MTD ITSA will now be delayed until April 2026, with the self-employed and landlords with turnover in excess of £50,000 joining first.

Those with income over £30,000 but not exceeding £50,000 will not need to join until April 2027.

A start date for general partnerships has not yet been announced.

The government will now review the needs of smaller businesses before asking those earning less than £30,000 to join.


Given the expected additional costs and administrative burden for small businesses this will undoubtedly be a very welcome change.  However, HMRC will have its work cut out when operating different systems for self-assessment customers so further delays could be on the cards.

If you have any questions about MTD or anything to do with your accounting affairs then feel free to call us on 01737 652 852.