Several months ago Hubu Accountants in Wales talked to our clients about how the Government's MTD for ITSA scheme would apply from April 2023 for unincorporated businesses and landlords with total business or property income above £10,000 per year.
However, last month the Government decided to extend the April 2023 deadline and announced a new phased mandation of Making Tax Digital for ITSA, giving Self Employed individuals and Landlords more time to prepare. The transition to MTD for ITSA will now begin from April 2026 instead of April 2024, giving Businesses and Self Employed people more time to get set up with the best Tax Accounting Software to start keeping a digital record on their income and expenditure, and to provide quarterly updates to HMRC.
What is the MTD for ITSA scheme?
HMRC are trying to make it much easier for both businesses and individuals to get their tax affairs correct. Making Tax Digital is a very important part of the HMRC's Tax Administration Strategy. The aim is that it will help to reduce the tax gap because the requirement for Businesses to report quarterly means the tax system will be updated more regularly, bringing it closer to real-time.
"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."
- Victoria Atkins, Financial Secretary to the Treasury -
What is the best accounting software for me to use for the Making Tax Digital Scheme
There are a few different digital software programs for bookkeeping that Self Employed people can use to help with Business accounting, but our recommendations are for just two of them - read more about the top accounting software for Self Employed people here.
What are the updates to MTD?
You need to follow the requirements for Making Tax Digital for Income Tax if you are a Self Employed person or a landlord if:
- you have an annual business or property income of more than £50,000 (from 6th April 2026)
- you have an annual business or property income of more than £30,000 (from April 2027)
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital for Income Tax.
Who can help me with my MTD?
If you’d like more information about getting ready for the MTD for ITSA change, or if you’re looking for a certified public accountant in Blackwood Wales, please get in touch with HUBU Accountants today on 0800 206 2625.
Comments