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.