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Making Tax Digital for Income Tax Self Assessment postponed until 2026 | Birkett & Co. Ltd

Making Tax Digital for Income Tax Self Assessment postponed until 2026

Making Tax Digital for Income Tax Self Assessment postponed until 2026

The UK government has just announced some good news for self-employed individuals and landlords. Now, they will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA).


Why has MTD for ITSA been pushed back?

The modernisation of the tax system remains a top priority.

Businesses and self-employed individuals are in the midst of a challenging economic environment. To top it off, the transition to MTD for ITSA represented a significant change for taxpayers, their agents, and HMRC. As a result, the government is giving more time to prepare for MTD for ITSA, particularly for those with the smallest incomes. Therefore, the mandatory use of software for ITSA will be phased in from April 2026 rather than April 2024.

The digitisation of tax is increasingly becoming the norm.

However, the MTD for ITSA will be introduced in a phased approach based on income. Businesses, self-employed individuals, and landlords with an income of more than £50,000 are mandated to join in April 2026. Those with an income between £30,000 and £50,000 will be mandatory in April 2027.

Despite this recent news, the tax system’s modernisation remains crucial to the UK.

The MTD program is designed to make paying taxes more manageable and secure. It does this by requiring people to use special software to report their taxes every three months instead of once a year. This software will give people an estimate of how much tax they owe based on the information they provide. At the end of the year, people can use the software to add any extra information and finalise their tax affairs. The MTD program will replace the need for a Self-Assessment tax return.


MTD already demonstrates the benefits that digital ways of working can bring to businesses.

1. Improved Accuracy.

Rather than relying on paper, MTD allows taxpayers to input their info directly into a digital system. This can reduce errors and increase the overall accuracy of tax returns.

2. Increased Efficiency.

Using digital systems, taxpayers can quickly report their tax information to the government. This can help streamline the tax process and reduce the time devoted to tax compliance.

3. Enhanced Security.

Digital tax systems offers increased security compared to paper-based systems. This can help protect taxpayers’ sensitive financial information and reduce the risk of fraud or identity theft.

4. Better Data Analysis.

Digital tax systems can enable tax authorities to collect and analyse data. This can help them identify trends and patterns and improve the effectiveness of their tax policies.

5. Improved Accessibility.

MTD makes it easier for taxpayers to access their tax information and interact with the tax system. Moving online eliminates issues with distance, mobility issues, or other barriers.

How can we help?

I need help with my tax

It's no secret that individuals and businesses want to pay the least amount of tax possible. This is what fuels all our taxation services and is why we've built a reputation for minimising our client's tax liabilities. It's our savvy and skilled advice that keeps both our clients and the authorities happy.

I’m running a business

Running a business requires excessive plate spinning – far more than most people bargain for. As a business leader, we know you’d rather be getting on with the stuff you love doing: thinking creatively, nurturing your ideas and loving every minute of it – which is where we come in.

I want to start a business

Helping business ideas take off is incredibly rewarding, not least because of the creativity of our clients’ start-ups. We’re proud to support a rich variety of innovative and entrepreneurial ventures. We work one-on-one with clients to ensure their businesses don’t just survive but thrive.

I want to grow my business

There’s no doubt that scaling your business is tough. It requires tactical decision-making and a watertight strategy with one goal in mind: growth, and lots of it. Our proactive approach has seen many of our clients’ businesses thrive beyond expectations.

Get in touch for more clarification on Making Tax Digital for Income Tax Self Assessment

Here at Birkett & Co. Ltd, your success is our business.

Want to make your money work harder, faster and smarter? So do we. Here on the South Coast, our savvy, forward-thinking team of advisors are on-hand to support you with any financial questions. Whether you’re an individual or a business, you can expect candid communication and industry-leading advice.

We’ll ensure your finances are not only on your side, but you have the power to make your money work harder and go further than you thought possible.

Facilitating your business’ growth one-on-one is what drives our team of experienced professionals. We’re incredibly proud to be so much more than an accountancy firm. Since our formation in 1979, our unique, proactive approach has helped thousands of businesses prosper. Our team welcomes emails or calls from new and existing clients and endeavours to respond within two working hours.

Reach out for our refreshingly personalised and practical take on how the Making Tax Digital for Income Tax Self Assessment delay might help (or hinder) you and your business.

We Guarantee . . .

  • A holistic approach that's best for the business and you
  • Strong foundations that are fit for you now and in future
  • To communicate with clients in words they understand
  • Industry-leading knowledge with industry-leading software