Autumn Statement – MTD for income tax self assessment


The Chancellor’s Autumn Statement 2023 confirmed that Making Tax Digital for income tax self assessment (MTD ITSA) will not be extended to those earning under £30,000 and made a number of other tweaks to the rules.

The Government announced at the end of last year that the introduction of MTD ITSA for landlords and the self-employed would be staged: those with income over £50,000 will come in first from April 2026; and those with income between £30,000 and £50,000 will come in a year later in April 2027.

It’s now been confirmed that those with income under £30,000 will not be brought into MTD ITSA for now, although this decision will be kept ‘under review’.

Reporting Changes

Under the original MTD ITSA proposals, year-end reporting would have involved two separate steps: an End of Period Statement reporting the taxable profit/loss of each trade or property business, and a ‘Final Declaration’ pulling together the End of Period Statement data, other sources of income, allowances and reliefs etc. to calculate the final tax position.  HMRC has now indicated that the End of Period Statement will no longer be a separate requirement.

A further change is that quarterly updates will now be cumulative. This should enables taxpayers to simply correct any errors in their next quarterly update, rather than resubmitting past quarters.

Castletons Accountants

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