MTD for the self-employed and landlords delayed
Posted on 8th February 2023 at 13:06
The planned launch for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) has been delayed from April 2024 to April 2026. But there are also some other changes that have happened to the scheme to be aware of.
The rollout of MTD for ITSA has been delayed so that the scheme benefits can be maximised. But the delay also acknowledges the challenging economic environment that the self-employed and small landlords face and the significant change that is required to transition to MTD for ITSA. Therefore, the delay allows more time to plan for the transition.
The changes to MTD for ITSA are:
Self-employed and landlords with an income over £50,000 will need to keep digital records and submit quarterly income and expenditure updates through MTD-compatible software to HMRC from April 2026
Self-employed and landlords with an income between £30,000 and £50,000 will need to do this from April 2027
Those with an income under £30,000 are still under review and the government is looking at how they can best cater for this category and will consult on this in due time
The extension of the scheme to partnerships has also been postponed and will be announced at a later date
The changes above are significant as previously they planned to include all self-employed and landlords with an income over £10,000. It also allows a lot more time for everyone to prepare for this transition, as it is a significant change for many of those affected, as well as the software providers and accountants like us.
However, this is an opportunity to start preparing yourself for the change especially if your accounts aren’t digital yet. Digitising your accounts is worth exploring sooner so that you are starting to get ready and are benefiting from the efficiencies and improved information they provide.
Tagged as: landlords, Making Tax Digital, Self assessment, self employed, tax return
Share this post: