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Making Tax Digital

Making Tax Digital

(including partnerships)

Making Tax Digital was set to be in by 2024 for self-employed and landlords, but changes have been made with a two-year delay until April 2026.

The NEW scope and timing phases of MTD ITSA, include:

  • A two-year delay until April 2026 for mandatory MTD ITSA filing.
  • Minimum income reporting level increased to £50,000, with those earning more than £30,000 mandated to join the scheme in 2027.
  • The situation for landlords and sole traders earning less than £30,000 will be reviewed to see if MTD ITSA can be shaped to meet the needs of smaller businesses.
  • Partnerships will not be brought into MTD for ITSA as previously planned in 2025.
  • Points-based penalty system to be extended to MTD ITSA filers when they join.

 

We will update this page with relevant information as it is released but you can read our latest blog on the update here.

You Still Need To Be Prepared

By starting to process of using the software, you will be more than ahead, by the time the legislation comes in and will have had the time to use the software.

This will mean that by April 2026 those affected will need to be using HMRC-compatible software, and will also need to:

  • Prepare and file quarterly returns
  • Prepare an annual return plus another tax return if necessary
  • Be ready to do its first report after the first quarter.
 

We are FreeAgent partners and if you sign up to this software it will do the hard work for you!

We still advise you to not leave the digital process behind.

Regardless, Making Tax Digital will be here to stay, and advanced digital systems will make your financial processes, much simpler.

For more information please contact us at enquiries@ebsaccountants.co.uk