MTD has been with us for some years now. It was first introduced for VAT reporting, with the subsequent roll-out programme for income tax bringing more taxpayers into the scheme’s purview.
The intention of MTD is to modernise the tax system, reducing the potential for human error and making it easier for individuals and businesses to keep on top of their affairs. It essentially involves using MTD-compliant software to provide more regular updates to HMRC on the income and expenditure on each of your qualifying businesses.
MTD for ITSA
MTD for ITSA launches on 6 April 2026 for individuals with self employment/rental income over £50,000, with the threshold dropping to £30,000 on 6 April 2027. This shift means you’ll move to quarterly digital updates, giving HMRC a clearer, real-time view of your affairs as well as an annual submission.
The introduction of MTD for ITSA is a significant change to the administration of the self-assessment tax system and taxpayers will need to ensure they understand their obligations and what you need to do. Whether you are in the scope of MTD for ITSA now, or will be later, it is important to understand how these changes may affect you.
Our guidance document details the full scope of MTD for individuals and how CT can assist to ensure you are compliant.
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