Making tax digital for income tax

Last updated: 02/10/2024

Digital record keeping, reporting and paying tax, using MTD compatible software.
The legislation is expected to impose quarterly digital reporting obligations for income tax for self-employed individuals and landlords. For those who are neither domiciled nor deemed domiciled in the UK, MTD for ITSA will only be required in respect of UK trades and property businesses.
Timing: MTD for ITSA will be introduced from April 2026 instead of April 2024 as previously announced. Self-employed individuals and landlords with receipts over £50,000 will be mandated to join first from April 2026. Those with receipts over £30,000 will be mandated from April 2027. The previous government wanted to review whether those under the £30,000 threshold will be mandated to join MTD for ITSA. Following the phased approach, the previous government did not extend MTD for ITSA to general partnerships in 2025 but wanted to commit to introducing MTD for ITSA to partnerships at a later date. The previous government anticipated that most taxpayers within the scope of MTD for ITSA will be able to sign-up voluntarily before they are mandated to do so.