Making Tax Digital Update
It has recently been announced that the Government are delaying Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) until April 2026.
The thresholds for the criteria for individuals to comply with MTD for ITSA have also changed to £50,000 of annual turnover from self employment or property, an increase from the previous threshold of £10,000.
Following the first phase of MTD for ITSA in April 2026 there will be a second phase in April 2027 where the turnover threshold for individuals to comply will reduce from £50,000 to £30,000.
General Partnerships were previously required to comply from April 2025 however this has also been delayed with no new date announced yet.
This extension is welcomed as it will allow us and individuals more time to get prepared. The changes will also mean that fewer individuals will be required to comply as the turnover threshold has increased from the original £10,000.
We would however encourage for individuals who are not already using a digital software to start thinking about using digital record keeping, ensuring you are prepared for April 2026.
Alice Chapple FCCA ACIPP
Senior Manager
Alice joined Evolution ABS in July 2013 after completing her A Levels at the Woodroffe School. She has completed her AAT with Richard Huish College, and was nominated for higher apprentice of the year in Somerset and finished in the top 3. Alice became a fully qualified Chartered Certified accountant in May 2018, and has since completed her Payroll Technician Certificate and oversees our payroll department.
In her spare time, she is an active member of Axminster Young Farmers, and enjoys being in the countryside and walking her two dogs. She also enjoys helping her family and her husband on their dairy farms in East Devon.