Making Tax Digital (MTD) has been delayed21 Dec, 20222 Mins
The government has delayed the introduction of Making Tax Digital (MTD) for income tax for l...
The government has delayed the introduction of Making Tax Digital (MTD) for income tax for landlords and self-employed by two years until 2026 and raised the income thresholds, meaning a significant number of individuals will not need to move to digital accounting just yet.
MTD for Income Tax Self Assessment (ITSA) was due to be implemented from April 2024 for people with a total gross income over £10,000 from self-employment and property in a tax year, with general partnerships following this in 2025.
The Government ‘ latest publication highlights their understanding of the challenging economic environment businesses are facing, and whilst some businesses are ready for the change, others need more time to get ready for the move to digital reporting.
The Government is therefore giving a longer period to prepare for MTD and this will now be phased in from April 2026 initially for businesses with an income of £50,000 or more.
We will publish our new guide to MTD for ITSA shortly, but in the meantime, if you want to speak to us about how going digital can significantly benefit your business, please contact our digital team.