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.
MTD is scheduled to be mandatory for individuals and landlords with income over £50,000 from April 2026. Those with income over £30,000 will be required to join MTD for ITSA in April 2027. If your business is in existence immediately before 6 April 2023 then you will be required to follow the new legislation, regardless of your accounting period end, when MTD for ITSA comes into force.
General partnerships will not be required to join MTD for ITSA in April 2025, as previously announced.
The Moore UK Making Tax Digital Hub is here to help you prepare for the next MTD deadline - MTD for ITSA.
Have a question? Contact Us.