We have to collect some data when you use this website so it works and is secure. We'd also like your consent to collect data to study how people use our site. Doing so helps us improve our services and allows us to tailor the marketing you see on our site. Select 'Accept cookies' to agree or 'Cookie settings' to choose which cookies we use. You can change your mind at any time by clicking the 'Manage Cookies' link.
Smart accounting software - no commitment, cancel anytime
The mandatory deadline for Making Tax Digital (MTD) for Income Tax has been moved from April 2024 to April 2026.
The government announced on Dec 19th 2022 that they are pushing back the deadline on MTD for ITSA to give landlords and individuals who are self employed more time to prepare.
What is required for Income Tax in April 2026?
From April 2026, landlords and self-employed individuals will have to keep digital records and report their quarterly Income Tax Self Assessment (ITSA) digitally to HMRC using compatible software. This affects those with an income of more than £50,000.
Following each submission, they will receive an estimated tax calculation to help them budget. At the end of the year, they can add non-business information and finalise their tax using MTD-compatible software. This will take the place of the current Self Assessment tax return system.
Self-employed individuals and landlords with an income between £30,000 and £50,000 will need to do this from April 2027.
If you’re a VAT registered business, you will most likely need to be filing your VAT digitally already: read our full guide to MTD.
Why has the MTD for ITSA deadline changed?
The government has announced the change in deadline to provide HMRC, landlords and self-employed individuals more time to prepare for MTD. In the current economic climate, there are many additional challenges and pressures on managing a business. The change in deadline should help to relieve some of the pressure on landlords and those who are self-employed.
Victoria Atkins, Financial Secretary to the Treasury, said, “It is right to take the time to work together to maximise the benefits of Making Tax Digital for small businesses by implementing the change gradually. It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.”
Reviewing smaller businesses
The government has also announced a review into how MTD for ITSA can meet the needs of smaller businesses (those under £30k income). It will impact the approach to MTD for ITSA post-April 2027, informing how small businesses fulfil their Income Tax obligations.