Making Tax Digital for Income Tax Self Assessment Delayed


The Government has delayed the transition for self-employed individuals and landlords to Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA).  The mandatory use of software was being phased in from April 2024, but this has been extended to April 2026.

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027.

The Government has also announced a review into the needs of smaller businesses, particularly those under the £30,000 income threshold. The review will consider how MTD for ITSA can be shaped to meet the needs of these smaller businesses and the best way for them to fulfil their Income Tax obligations. It will also inform the approach for any further roll out of MTD for ITSA after April 2027.

Whilst the deadlines have moved, we would encourage clients affected by MTD for ITSA, to move their affairs onto MTD-compatible software as soon as they can.  Such software has many benefits to clients, including easing their administrative burden.  If you would like to discuss this further please contact our Cloud Accounting Manager, Siobhan –

Castletons Accountants

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