Making Tax Digital.

HMRC successfully introduced MTD for VAT for returns starting on or after 1 April 2022, MTD for the self-employed ( ITSA )  has been postponed now 5 times. The latest delay means that self-assessment customers won’t need to comply until 6 April 2026.

When MTD for ITSA arrives in April 2026, only self-employed sole traders, and landlords with an income over £50,000 will be mandated to follow the rules. Those earning £30,000 and above will need to keep digital records from April 2027 onwards.

The Government has launched a review into accommodating the needs of smaller businesses and is yet to announce a date for extending the legislation to partnerships.

The Government hopes that delaying the rules will give customers more time to get their finances in order and familiarise themselves with MTD-compatible software.

At GR Accountancy we have successfully transitioned all our clients seamlessly through the MTD process of Vat successfully and will work hand in hand with clients to take them through MTD for ITSA in the coming years as it is mandated by HMRC.