ACCA welcomes announcement that this major change will now be mandated from 2026
On 19 December 2022, the UK government announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be mandated starting from April 2026, rather than from April 2024.
ACCA has been asking for some time, both for our members and HMRC which is struggling with service levels, to pause and phase in MTD for ITSA – and this announcement will provide members more time to prepare their clients. HMRC will also have the time required to carry out further testing and provide detailed implementation guidance.
The details announced include the following changes to the original proposals:
The government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. This will look in detail at how the MTD for ITSA service can be shaped to meet their needs and the best way for them to fulfil their income tax obligations. Once that review is complete – and in consultation with businesses, taxpayers, agents, and others – the government will lay out the plans for any further mandation of MTD for ITSA.