Making Tax Digital for ITSA has been delayed, however we’re able to assist you

HMRC has introduced that Making Tax Digital (MTD) for Revenue Tax Self Evaluation (ITSA) has been delayed till April 2026. With small companies, accountants and bookkeepers dealing with difficult instances, we perceive and assist the delay from HMRC – providing you with extra time to organize. 

From this date, landlords and self-employed individuals incomes above £50,000 yearly might want to adjust to MTD guidelines. These incomes revenue over £30,000 will come into MTD from April 2027. This implies sending quarterly updates to HMRC through MTD-compatible software program, in addition to an Finish of Interval Assertion (EOPS) and a Closing Declaration yearly. 

The delay, nonetheless, doesn’t change how we’re approaching the upcoming laws. 

We’re prepared for MTD for ITSA, and can proceed to reinforce our providing to ship the perfect person expertise potential, and supply steerage to the accounting companions and small enterprise prospects who want our assist in getting ready for the long run of digital tax. 

Why has this occurred?

With companies and their advisors dealing with a interval of unprecedented disruption, the delay to MTD for ITSA is HMRC’s bid to make sure it’s so simple as potential for companies emigrate. This will solely be a superb factor, as a result of no matter this delay, it stays an important a part of the Authorities’s journey to digitise the tax course of.

All companies might want to hold digital information sooner or later – and whereas this alteration might really feel overwhelming to these affected, it does promise critical advantages in the long term. 

From optimising onerous, time-consuming duties, to bettering the effectivity and accuracy of the tax course of, small companies, accountants and bookkeepers ought to be capable to look to the long run with optimism. And even when MTD for ITSA is a bit of additional down the street than anticipated, it’s by no means too early to get your geese in a row by adopting suitable accounting software program. 

And extra broadly, by empowering small companies to undertake digital instruments, they’ll higher put together themselves for the challenges forward. For instance, an enormous variety of small companies are dealing with money movement crunch – when bills in a given month exceed income. Digital instruments can assist small companies higher monitor bills and receives a commission more shortly – important elements of managing money movement. 

The brand new MTD for ITSA timeline

Listed here are the important thing dates you could know when getting ready for MTD for ITSA: 

  • Apr 2026: MTD for ITSA – companies, self-employed people, and landlords with revenue over £50,000.
  • Apr 2027: MTD for ITSA -businesses, self-employed people, and landlords with revenue over £30,000.
  • Not but timelined:
    • MTD for ITSA for these with revenue underneath £30,000 yearly
    • MTD for ITSA for normal partnerships

We’ll proceed to work carefully with HMRC to assist MTD for ITSA because it evolves, and likewise assist MTD for Company Tax when it turns into mandated. However most significantly, we’re dedicated and able to offer you an answer to satisfy purchasers’ future submitting wants, and make this journey as easy as potential. 

To search out out extra concerning the laws and the way Xero can assist your purchasers comply, take a look at a few of our MTD for ITSA assets.