MTD ITSA delayed for two years
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?
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. 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. Previously MTD ITSA was going to be mandatory for the self-employed/landlords earning over £10,000. 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.
Note. This does not affect the move to tax year basis periods, which will be effective from 2024/25 after next year’s transition.
Related Topics
-
HMRC launches new R&D advance assurance process
HMRC has introduced a new advance assurance process for research and development (R&D) tax relief claims, aimed at giving eligible companies greater certainty before submitting a claim. What does the new process involve?
-
Dodging tax and NI on 2025/26 benefits
If you had taxable benefits in kind in 2025/26 then you’ll have to pay income tax on the value. Your company also has to pay 15% NI. Now the tax year has passed is there any way you can reduce or eliminate this tax liability?
-
Selling spare items to your company
You’re short of cash but if you use the traditional methods to take more money out of your company you’ll pay higher rate taxes. Is there another way to extract profits without paying income tax or NI?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.