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 in 2024-25.
• 6 April 2027, where turnover is above £30,000 in 2025-26.
• 6 April 2028, where turnover is above £20,000 in 2026-27.

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.