Receipt capture apps are great tools which allow you cut down the amount of time spent on processing bookkeeping and managing paperwork, leaving you more time…
On Monday 19 December, HMRC announced a phased mandation for Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA). This has been put in place to allow more time for self-employed individuals and landlords to prepare. It was also announced that the income thresholds would be increased.
What are the changes to MTD for ITSA?
Originally, all individuals with property and/or self-employment income exceeding £10,000 had to comply from April 2024.
HMRC have now updated the legalisation to the following total income thresholds and dates:
- April 2026 – Income exceeding £50,000
- April 2027 – Income between £30,000 and £50,000
HMRC will be reviewing how MTD for ITSA affects those with income under £30,000.
In addition, the requirement for general partnerships to comply in 2025 has also been scrapped.
We can only assume that the requirements to comply with MTD for ITSA will remain the same as originally planned.
You can still prepare for MTD for ITSA now
Despite the delay in MTD for ITSA, we still recommend starting your digital journey if you haven’t done so already. Using a cloud accounting software to keep your records allows you to know more about your finances, with the ability to run real time reports and track your business’ cash flow position. Make fewer mistakes by reducing human error and spend less time bookkeeping with clever AI functionality. In addition, access your business records anywhere any time via the cloud and even connect with your accountant for quick advice and important advisory conversations.
Find our more on our Making Tax Digital pages, and get in touch with your contact at PKF Francis Clark for advice on using cloud accounting software.