Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs, this will mean the end of the annual tax return for millions and will be a significant change for most businesses.
Under MTD for ITSA, instead of submitting paper-based forms or waiting until the end of the year to file, taxpayers will be required to use approved software to track their income and expenses throughout the year. This software will then send quarterly updates to HMRC, providing a more accurate and up-to-date view of a taxpayer's financial situation.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world.
Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
more effective ● more efficient ● easier for taxpayers to get their tax right
From April 2026, MTD for ITSA will become mandatory for self-employed individuals and landlords with income over £50,000 a year and in 2027 this threshold is being reduced to £30,000.
Speak to our team to find out more about how we can help you navigate this today!