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.
MTD for ITSA was due to be introduced from April 2023 but was 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.
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.