Making Tax Digital
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)
MTD for ITSA is the second phase of digitising tax record-keeping. It applies to self-employed individuals and landlords. HMRC's MTD for ITSA pilot program re-opened April 2024.
MTD for ITSA will apply for self-employed businesses and landlords from:
- 6 April 2026, where turnover is above £50,000.
- 6 April 2027, where turnover is above £30,000.
- 6 April 2028, where turnover is above £20,000.
The Government is continuing to review the position for self-employed businesses and landlords with turnover below £20,000.
Making Tax Digital (MTD) for VAT
- From April 2022, all VAT-registered businesses must retain digital records and submit their VAT returns to HMRC using 'functional compatible software', unless an exemption such as digital exclusion applies.
- Once in MTD for VAT, a business remains in MTD for VAT unless it deregisters for VAT.
Our Making VAT Digital Zone contains guides and updates.