HMRC have announced a delay to the introduction of MTD for Income Tax Self Assessment (ITSA). They have also announced threshold changes to those affected.
MTD for ITSA was going to be compulsory for self-employed individuals and landlords with income of more than £10,000 in April 2024.
HMRC have announced that this has been pushed back two years to April 2026.
HMRC have also announced that the threshold has moved from £10,000 to £50,000. From April 2027 this threshold will drop to £30,000.
This is great news for landlords with 1 – 2 properties being let out as they will most likely stay under the threshold for sometime.
HMRC will inform us of the approach for any further roll out of MTD for ITSA after April 2027.
Partnerships will not have to comply with MTD for ITSA rules in 2025 as previously announced. They have not announced when they intend to introduce the rules for partnerships.
Once MTD for ITSA does come in, eligible businesses and individuals will need to file quarterly returns through MTD-compatible software, file an annual return compiling those four returns, as well as filing the normal self-assessment tax return.
If you want to understand how the use of software can help your business, and be compliant for the MTD changes then please contact us here.