In December it was announced that MTD for ITSA (Making Tax Digital for Income Tax Self-Assessment) is being delayed for 2 years to give people more time to prepare and adapt to the new ways of working.
The following changes were announced in the statement:
- A 2 year delay until April 2026 or mandatory MTD ITSA filing.
- Minimum income reporting level has been increased to £50,000, with people earning more than £30,000 joining the scheme in 2027.
- The situation for landlords and sole traders earning less than £30,000 will be reviewed to see if it can be modified to meet the needs of smaller businesses
- Partnerships will not be brought into MTD for ITSA as previously planned in 2025.
- The points-based penalty system will be extended to MTD ITSA filers when they join.
If you have any questions regarding this email then please do not hesitate to contact us.