Delay to MTD for Self-Assessment announced

March 1, 2023

HMRC has announced a postponement to MTD for ITSA until 2026

After much anticipation, HMRC recently announced a delay to the introduction of MTD for Income Tax Self-Assessment (MTD for ITSA). HMRC announced the delay for a further two years, with an anticipated start date of April 2026. 

Aside from the delay, HMRC also announced a new staggered approach whereas previously all sole traders and landlords with a turnover of more than £10,000 were required to record keep digitally and submit quarterly summaries of income and expenditure to HMRC. The main requirement was to submit quarterly via compliant software from April 2024. 

However, with the implementation now due to take place from April 2026, HMRC also announced a phased implementation: 

  1. From April 2026, all self employed and landlords with income over £50,000 will be mandated to join the MTD for ITSA scheme first.
  2. From April 2027, all with income over £30,000 will be mandated to join MTD for ITSA 

HMRC also announced that the MTD for ITSA requirements for Partnerships have been postponed until further notice. 

The changes come as the UK government understand the challenges facing businesses and self-employed individuals and therefore realise that the transition to MTD for ITSA is a significant change for all parties involved, meaning more time is required to ensure a smoother transition. 

So, what does this mean for you? 

We would still encourage you to implement digital accounting software now to allow for real time reporting and allow you to make more informed business decisions. Having access to your records digitally will allow you to have a full picture of how your business is performing and where efficiencies could be made. Digital accounting software is cost effective and will allow you to be familiar with the software ahead of the scheduled implementation of MTD for ITSA. Not only this, but the software can be accessed remotely, meaning our team can assist you in setting up the software and provide you with training so that you are familiar with how to use the software ahead of the new changes. 

If you would like to explore the options available to you, please contact us and we can help you with the next steps. 

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