Good news! 2 year delay for roll out of MTD for Self Employed
The planned implementation of the system for quarterly submissions for self employed income tax has been delayed by two years!
We’re referring to the catchy acronyms that are MTD (Making Tax Digital) for ITSA (Income tax self assessment).
Many were dreading the imminent implementation for self employed people to submit their income on a quarterly basis, which would keep things in line with the system that businesses have been gradually adopting over the last few years.
Not only was this going to be onerous administratively but it was not fully tested and it would involve pretty much everyone who is self employed. However, the thresholds have been changed too, for now. It WAS going to be all self assessment returns over £10,000 but now this has been raised considerably.
MTD ITSA will now be mandatory from April 2026 for businesses, self-employed individuals, and landlords with income over £50,000.
Self-employed businesses and landlords with income over £30,000 will be required to comply with MTD ITSA from April 2027, with partnerships to follow at a later date.
It is not certain if there will be a system in place for those with a self employed income lower than £30,000.
As ever, we will keep you posted as any further developments emerge.
If you’d like to discuss this or any other accountancy or business related query you have, please email David@theaccountancypractice.com or phone him on 01763 257882.
Happy new year!