The Government has recently announced phased mandation of Making Tax Digital for ITSA - also known as MTD for ITSA, it will now be effective from April 2026. 
 

Making Tax Digital (MTD) is an initiative from HMRC that is designed to make sure that our UK tax system is effective and efficient for taxpayers in an ever changing digital world. 

Currently, MTD for VAT is mandatory for all VAT registered businesses, above the £85,000 threshold and those that have voluntarily registered for VAT. This means that these businesses must keep records and submit their VAT returns digitally, using Making Tax Digital software that is recognised by HMRC, for example, Quickbooks or Xero. 

HMRC is currently in the process of implementing MTD for ITSA, which was scheduled for 2024 but was pushed back last year, until April 2026. Self employed individuals and landlords with an income of more than £50,000 a year will have to comply with MTD for ITSA from that date. Those with an income between £50,000 and £30,000 will have to follow the rules from 6 April 2027. There has been no further announcements on partnerships.

The Moore UK Making Tax Digital Hub is here to help you prepare for the next MTD deadline - MTD for ITSA.