The Latest News on Making Tax Digital

Our self-employed and property investor/landlord clients will be relieved to hear that just before Christmas, HMRC announced a further 2 year delay of the Making Tax Digital for Income Tax and Self Assessment (MTD for ITSA) initiative until April 2026, with a change to the criteria for entry into the scheme

The accounting profession has fought long and hard to make HMRC aware that MTD, in its current form, is an unwelcome burden on the smallest of the UK’s taxpayers. Whilst we agree that all of our clients should keep digital records, as this provides valuable information and tax-saving opportunities, we did not agree with the requirement for those not VAT registered, to complete 5 submissions a year to HMRC, instead of just one tax return currently required.

Here is the proposed new criteria:

• Sole Traders and Property Investors, with turnover or rental income (RI) over £50,000 per annum will be required to undertake MTD quarterly filing from April 2026
• Those with turnover/RI between £30,000 and £50,000, will be required to join from April 2027
• Those with turnover/RI less than £30,000 will be monitored and further news on these will be announced in the future.

We will continue to keep you informed of further announcements.