Articles

Lower threshold for MTD for ITSA

1 October 2026 By SBTF Publishing Ltd 🔒 Subscribers

Sarah Bradford explores what the reduction in the MTD for ITSA threshold means for clients and how to plan ahead

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) became mandatory from 6 April 2026 for traders and landlords whose combined trading and property income before the deduction of expenses was £50,000 or more in 2024/25. The threshold drops to £30,000 for 2027/28 based on trading and property income for 2025/26.

Disclaimer

Small Business Tax & Finance is intended to be a source of news and ideas for accountants and other taxation practitioners and financial advisors. No publication can be comprehensive enough to foresee all the considerations which may be relevant in individual cases and circumstances. Moreover, whilst great care is taken to ensure the highest standards of accuracy, the authors, the editor and the publisher cannot and do not accept any liability for any loss or disadvantage suffered by any person acting or refraining from acting in reliance on anything published in Small Business Tax & Finance.

🔒 Subscribers can read the full page

Sign in