MTD for ITSA will now be phased, following the Governments ‘stop/start’ period on this new legislation, the exact date will now be dependent on the taxpayer’s income:
- From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be mandated into MTD for ITSA.
- Those with an income of between £30,000 and up to £50,000 will be mandated from April 2027.
At the Autumn Statement on 22 November 2023, it was confirmed that MTD for ITSA would not be extended to landlords and sole traders with income under £30,000 at this time. However, the Government will keep this decision under review, and there remains the possibility that this population will be brought into MTD for ITSA at some point in the future.
Although the Government has said they remain committed to extending MTD for ITSA to general partnerships, this will not take place in April 2025 (as originally planned) but from a date yet to be confirmed. All other partnerships (e.g. those that have corporate partners and Limited Liability Partnerships) are also expected to be required to join MTD at a future date (to be confirmed).
