The April 2026 rollout of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is fast approaching.
This initiative requires individuals and businesses to keep digital records and use approved software to file tax returns.
A brief history of MTD
MTD was introduced in stages, starting with VAT:
Upcoming ITSA requirements
The phased introduction of MTD for ITSA is as follows:
Eventually, people earning over £20,000 will also be required to follow MTD rules, though the timeline for this stage is yet to be confirmed.
In the October 2024 Budget, the Government reaffirmed its focus on modernising the tax system through MTD, emphasising its long-term benefits.
How to prepare
To ensure your business is ready for these changes:
Our expert team is here to guide you through the transition, offering tailored support and practical advice.
Contact us today to make sure your business is fully prepared for MTD for ITSA.