It has not come as a big shock to the accounting world that Making Tax Digital for Income Tax Self-Assessment has been delayed again. This was announced on 19th December – right before Christmas!

So, you will be asking yourself the question: What is Making Tax Digital for Income Tax Self-Assessment (MTD ISTA)?

It is a scheme set out by HMRC to make self-assessments done digitally (just like MTD for VAT returns) – straight from your accounting software.

The scheme has been put back by two years to April 2026 with a few other adjustments:

–  The new start date of April 2026 for self-employed income over £50k – moved from April 2024 and lower threshold of £10k.
–  Businesses with income over £30k will need to comply by April 2027.
–  If your income is less than £30k, nothing will change for now.

Although now not urgent, this change will affect a lot of landlords and self-employed, so now is a great time to start thinking about how to make your financial data digital so you are ready and well prepared ahead of time.

If you are still working on spreadsheets and want some advice and guidance on how to move over to Xero software, we can help you get prepared in 2023!