Making Tax Digital for Income Tax Self-Assessment image

HMRC have announced changes to the first phase of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA), which will now not become mandatory until at least 6 April 2026 (previously 6 April 2024).

From 6 April 2026 self-employed individuals and landlords with income of more than £50,000 will be required to keep digital records and provide HMRC quarterly updates on their income and expenditure through MTD for ITSA compatible software.

Honey Barrett are here to help, and with our team of experts in tax and online ‘cloud’ accounting packages, we can guide you through the intricacies of what Making Tax Digital means for you and advise you on the best solutions.

Who is affected by Making Tax Digital for Income Tax Self-Assessment?

Whether you are a Builder, Hairdresser, GP Locum or Landlord, if your annual trade or property income is above £50,000 you will need to follow the MTD for ITSA requirements from 6 April 2026.

From 6 April 2027 self-employed individuals and landlords with income of between £30,000 and £50,000 will be required to keep digital records and provide HMRC quarterly updates on their income and expenditure through MTD for ITSA compatible software.

If you are self-employed or a landlord with income under the £30,000 threshold the Government has announced a review in to the needs of smaller businesses and how best MTD for ITSA can be managed. A mandatory date is not yet known but this is expected to be after April 2027.

MTD for ITSA will not be extended to General Partnerships in 2025 but is expected at a later date as part of the Government’s 10-year strategy for the future of tax administration in the UK.

How can Honey Barrett Chartered Accountants help?

Whilst you now have more time to prepare for MTD for ITSA we would recommend you start considering digital record keeping sooner rather than later, to ensure a smooth transition and get you ready for the change.

At Honey Barrett we have the knowledge and expertise to make transitioning to Making Tax Digital stress free and simple.

With our friendly and approachable manner, we will be able to advise on and discuss your options to ensure a proactive approach is taken so you can comply with these mandatory changes, when they are introduced.

What should I do next?

Contact us today and one of our Making Tax Digital Team will be more than happy to talk to you about Making Tax Digital and answer any further questions you may have.

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