The Treasury has confirmed that Making Tax Digital for income tax self-assessment (MTD for ITSA) will be delayed a further two years until April 2026.
According to First Secretary to the Treasury Victoria Atkins, this phased approach will give businesses more time to prepare and adapt to new ways of working.
The minimum reporting level for businesses, self-employed individuals and landlords will be increased from £10,000 to £50,000, with those earning over £30,000 not needing to comply with MTD rules until 2027.
The Government will also launch a review into how MTD for ITSA can better serve the needs of smaller businesses, particularly those earning less than £30,000 a year.
Partnerships will not be brought into MTD for ITSA in 2025 as previously planned, and will instead be mandated to join the scheme at a later date.
Furthermore, a points-based system aimed at making penalties fairer and simpler will come into effect for taxpayers when they join MTD for ITSA.
You might be interested in...
19 Aug 2026
Agriculture and horticulture businesses are under pressure to invest in water efficiency and sustainability. Cambridgeshire growers and food producers can now apply for grants up to £50,000. Here’s what you need to know.
Learn more
Government grants to help Cambridgeshire farmers boost drought resilience
18 Aug 2026
The 2026 changes to UK GAAP and FRS 102 may seem technical, but they could have a real impact on how your business is viewed by banks, investors and other stakeholders.
Learn more
UK GAAP is changing: Why business owners should act before the numbers change
14 Aug 2026
Does your UK subsidiary need a statutory audit? Learn how group size, audit exemptions and worldwide group rules affect UK audit requirements.
Learn more
Does your UK subsidiary require a statutory audit?
13 Aug 2026
Audit exemption may reduce compliance obligations, but is stopping your audit the right decision? Explore the value independent assurance can bring.
Learn more
Should audit-exempt companies still have an audit?
13 Aug 2026
Understand the financial challenges facing independent schools, from KPIs and VAT changes to governance and long-term sustainability. Read more.
Learn more
Understanding Independent School Financial Health: A Guide for Governors
13 Aug 2026
Strong schools rely on strong governance. Discover how governors and senior leaders can work together to provide challenge, oversight and direction.
Learn more
How Independent School Governors Can Build Effective Partnerships with Senior Management