Extra time for Landords and Self-Employed

This means that you'll have until April 2026 to start using Making Tax Digital compliant software to report your income and expenditure to HMRC. The phased-in approach will allow you to gradually adjust to the new system and ensure that you have enough time to get completely up to speed.

The recent announcement by the government to delay Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) has come as a welcome relief for many self-employed individuals and landlords.

Here at Andrew Passer Accountants we have had a rise in calls from people struggling to keep up and getting to grips with the new software. I hear from clients storires about facing challenges in a difficult economic climate. Plus the added burden of transitioning to a new tax system could have proved to be too overwhelming.

The delay in implementing Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) just gives everyone a bit more time to adjust.

This phased approach will allow for a much smoother transition and allow individuals and landlords enough time to get up to speed with the new requirements. They will have more time to focus on navigating the current economic challenges they already face, with some room to breathe. 

Self-employed individuals and landlords with an income of more than £50,000 will be required to use MTD-compatible software to report their income and expenditure to HMRC on a quarterly basis from April 2026.

This means that if your income is over £50,000, you'll need to start using software to report your income and expenditure to HMRC on a regular basis starting in April 2026.

Those with an income of between £30,000 and £50,000 will be required to do this from April 2027. If your income falls between these amounts, you'll need to start using software to report your income and expenditure to HMRC starting in April 2027.

The delay of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) until April 2026 for self-employed individuals and landlords with an income over £50,000 and April 2027 for those with an income between £30,000 and £50,000 is a positive outcome for many.

If you have any questions about MTD, contact your accountant sooner rather than later. It will prevent any last minute panicking.

Contact me if you would like advice or just more information on my services.