The UK Government has announced plans to make it easier for individuals and businesses to comply with tax regulations. Self-employed businesses and landlords will be required to follow the rules for MTD for Income Tax from their accounting period starting on 6 April 2026, which has been delayed by a further two years. (It was due to apply from the 6 April 2024). The introduction will be phased in over several years, with the date dependent on the taxpayer's income. From April 2026, self-employed individuals, and landlords with an income of more than £50,000 will be required to follow MTD for ITSA. Those with an income of between £30,000 and up to £50,000 will be required to follow from April 2027. The government will review the needs of smaller businesses and individuals with an income under £30,000 before making any decision on the further mandatory implementation of MTD for ITSA. It requires digital record keeping (Excel or software) and the information required to submit quarterly updates on their income and expenditure to HMRC through MTD-compatible software. It also requires submitting end-of-period statements. The quarterly updates will be submitted by the 7th of the following month to the relevant quarter date.
Corporation Tax (CT): From April 2026, companies will be required to join MTD for Corporation Tax (CT). However, from April 2024, companies can start using a pilot scheme for MTD for Corporation Tax (CT).
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