MTD for Self-Assessment delayed

Posted on 2nd February 2023 by Joanne Stoneman

Government announces more time to prepare for Making Tax Digital for Income Tax Self-Assessment becoming mandatory

Making Tax Digital

Government announces more time to prepare for Making Tax Digital for Income Tax Self-Assessment becoming mandatory

The UK Government have announced there will now be a phased introduction of Making Tax Digital for Income Tax Self-Assessment becoming mandatory from April 2026, rather than April 2024.

From April 2026, businesses, 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 Making Tax Digital compatible software.

Those with an income of between £30,000 and £50,000 will need to do this from April 2027.

The government will now review the needs of smaller businesses, and particularly those under the £30,000 threshold. This will look in detail at how the Making Tax Digital for Income Tax Self-Assessment service can be shaped to meet the needs of smaller businesses and the best way for them to fulfil their Income Tax obligations.

Once that review is complete and in consultation with businesses, taxpayers and agents— the government will lay out the plans for Making Tax Digital for Income Tax Self-Assessment to become mandatory.

You can find more information about Making Tax Digital for Income Tax Self Assessment on GOV.UK