Yesterday HM Revenue & Customs (HMRC) announced that self-employed individuals and landlords will have longer to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA).

The Government’s Making Tax Digital roadmap aims to transform tax administration to make it more efficient, effective and easier for taxpayers. Under the plans, taxpayers will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.

The mandatory use of digital software for Income Tax Self Assessment is being phased in from April 2026 onwards (rather than April 2024) based on income as follows:

• From April 2026 for self-employed individuals and landlords with an income of more than £50,000
• From April 2027 for those self-employed individuals and landlords with an income between £30-50,000
• The government has announced a review into the needs of businesses earning under £30,000 to inform its approach for MTD after April 2027

Read the press release in full

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