The Budget contained announcements regarding the rollout of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). The corresponding HMRC guidance has now been updated. What’s the latest position.
The current timetable for mandating into MTD ITSA is as follows:
April 2026 for sole traders and landlords with income over £50,000; and
April 2027 for those with income over £30,000
When this was announced, the previous government said it would consult on the position for those with incomes below £30,000 to ensure MTD was suitable.
The Autumn Budget confirmed that the threshold will drop to £20,000 by the end of the current parliament (likely 2029), but for now there is no indication of which year this will apply to. HMRC’s guidance has been updated to reflect this.
Who will need to use Making Tax Digital for Income Tax
You’ll need to use Making Tax Digital for Income Tax if all of the following apply:
you’re an individual registered for Self Assessment
you get income from self-employment or property, or both
your qualifying income is more than £30,000
What is included in your qualifying income
Your qualifying income is the total income that you get in a tax year from self-employment and property.
Find out what’s included in your qualifying income.
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