Making tax digital for income tax

Last updated: 23/01/2025

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 where their businesses are potentially within the scope of income tax. For UK residents, the regime will therefore apply to UK and foreign businesses alike.
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 government announced in the Autumn Budget 2024 that they intend to reduce this threshold to £20,000 by the end of the current parliament in 2029/30. It is 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.
The previous government intended to introduce MTD for ITSA to partnerships at some point after individuals joined the regime. The new government has not provided any further detail on the expected timeline.