Tax professionals welcome delay to compulsory digital tax reporting
The Chartered Institute of Taxation (CIOT) and Association of Taxation Technicians (ATT) have welcomed the announcement that the Government are delaying making it compulsory for self-employed businesses and landlords to keep digital records and report their income quarterly until April 2026 for those in the first stage, and later for smaller businesses.
In a written statement issued today, Financial Secretary to the Treasury Victoria Atkins announced that:
- Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) 1 will now be introduced from April 2026, with self-employed individuals and landlords with income over £50,000 mandated to join first
- Those with income over £30,000 will be mandated from April 2027
- The government will review the needs of smaller businesses, particularly those under the £30,000 threshold, before announcing any further mandation
- The government will not extend MTD for ITSA to general partnerships in 2025 as previously planned. This will now follow at a later date.