Commons Sense

House of Commons · Written Ministerial Statement

HM Revenue and Customs Update

19 December 2022 · Treasury

Proposed by Victoria Atkins Con Louth and Horncastle

Taxation

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The mandation of Making Tax Digital for Income Tax Self-Assessment will start in April 2026 for individuals with income over 50,000.
  • Individuals with income over 30,000 will be required to use MTD for ITSA from April 2027.
  • The government will assess the needs of smaller businesses with income under 30,000 before deciding on their mandation.

Issue summary

The statement discusses the introduction of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) in the UK, with a phased approach and additional time for businesses to prepare.

Action requested

The mandation of MTD for ITSA will be introduced from April 2026 for those with income over £50,000 and from April 2027 for those with income over £30,000. The government will review the needs of smaller businesses under £30,000 before deciding on further mandation.

Key facts

  • MTD for VAT is already demonstrating benefits to UK businesses.
  • Mandation of MTD for ITSA will start from April 2026 with income thresholds of £50,000 and £30,000 in subsequent years.
  • A new penalty system harmonising late submission and payment penalties for Income Tax Self-Assessment and VAT will be introduced.
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