In a previous post published about MTD for ITSA, I talked about the next step in the digitalisation of the tax system being MTD for ITSA, and subsequently posted a few fact sheets about it.
The previous post and fact sheets provided 6 April 2024 as the date MTD for ITSA becomes effective for the self-employed and landlords with income over £10k.
Today, HMRC published a press release that delays MTD for ITSA till April 2026.
It will now be phased with self-employed individuals and landlords with income of more than £50k (not £10k) required to keep digital records and submit quarterly returns. Those with income between £30k and £50k, will be required to do the same from April 2027. A review will be carried out to determine how MTD for ITSA can be shaped to meet the needs of businesses with income below the £30k threshold.
This is a significant change: effective two years later and the income threshold it affects is higher than previously planned. We will share more information in the new year, as it becomes available.
Contact hello@bancservices.co.uk with questions about getting ready for MTD for ITSA