The government has made this change in light of the “challenging economic environment” faced by these groups, giving them longer to prepare.
MTD aims to simplify and digitalise how self-employment and property income is reported by sending records directly to HMRC and also encourages keeping digital accounts.
From April 2026, self-employed people and landlords with an income of more than £50,000 will be required to use software that is compatible with MTD to keep digital records and update their income and expenditure quarterly. This will come into force for those with an income of between £30,000 and £50,000 by April 2027.
The government will also hold a review into the needs of smaller businesses, with a focus on those earning less than £30,000. It will look at how MTD for Income Tax Self Assessment (ITSA) can be adapted to be more effective for smaller firms and inform the approach for the rollout after April 2027.
SOURCE: Mortgage Solutions