MTD for ITSA Delayed

HMRC Confirmed yesterday that MTD for ITSA that was due to be implemented in April 2024, has now been pushed back to April 2026.

It has now been announced that MTD for ITSA will now be mandatory for businesses from April 2026. However, this will only apply to those businesses, self-employed individuals and landlords who have income above £50,000.

Businesses with income over £30,000 will be mandated to comply with MTD ITSA from April 2027.

It was originally planned that MTD ITSA would apply to partnerships from April 2025, but this will no longer happen, as the government intends to introduce MTD ITSA for partnerships at a later date.

Smaller businesses with income below £30,000 may find the move to MTD ITSA more challenging, so there will be a review of how MTD ITSA could best meet their needs before any mandation takes place.