Making Tax Digital (MTD) is being introduced for Income Tax Self-Assessment (ITSA) from 6 April 2024. Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for ITSA from 6 April 2024.

MTD for ITSA was due to be introduced from April 2023 but a written ministerial statement on 23 September 2021 (see here) confirmed that it would be delayed for one year to April 2024.

General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025. The date on which all other types of partnerships will be required to join will be confirmed later.

The regulations which set out how MTD for ITSA will work are here.

Some businesses and agents are already using software to keep their business records digitally and provide updates to HMRC on a voluntary basis as part of a live pilot to test and develop the MTD for ITSA service. To check which software packages are compatible with MTD for ITSA and find out what they do – see here. Further information on how the rules work, how to keep digital records, where to find appropriate software for sending updates to HMRC and how to sign up to the pilot is available here.