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HM Revenue and Customs Update

19 December 2022

Proposing MP
Victoria Atkins Con
Louth and Horncastle
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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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