Yesterday the UK Government announced that Making Tax Digital (MTD) would be delayed from April 2024 to April 2026. Although not mentioned in the initial announcement, the readiness of HMRC has been in question, especially to ensure they were ready for the influx of new data and information from taxpayers.

Previously, MTD was planned to impact all self employed individuals with a turnover of more than £10k. However there are further changes now announced as below.

From April 2026, self employed individuals with income (turnover) of more than £50k will be required to keep digital records – and quarterly returns to HMRC
From April 2027, those with incomes (turnover) of between £30k – £50k will also need to do this quarterly
Those under £30k will be mandated at a later time.

Further delays

MTD was initially announced by the (then) chancellor George Osborne in late 2015. The plan was for all digital records to be held by small businesses with a start of the process due from April 2018.

This was delayed through to 2019, then 2022, and finally with a further delay moving to 2024. This new delay now pushes the main introduction to April 2026.

This means that there is more time to adapt to digital records – however at the same time causes a complex situation where some people may not know which category they are in. With the current new rules (listed above), if you entered the over £50k threshold during the year, you would need to commence quarterly returns. If it was between the lower levels, you would need to from 2027.

The announcement causes more confusion and complexities which are being presented to the treasury by the relevant industry bodies to try and encourage clarification around these messages.

Keeping updated

We’re frustrated that further delays are being announced as it provides uncertainty. Malgra has heavily invested in preparing for MTD through educational sessions, additional materials and even technology upgrades to get ready.

We’ll continue to keep members updated during this time, and expect to provide further guidance and information in the new year.