Teresa Gammack Accountancy Ltd

24/12/2025

07/04/2025

There are major changes underway as to how income and expenses are to be reported to HMRC. You may have heard about it in the news – Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)

Who will be affected
Landlords and sole traders with business or property income over £30,000 (£50,000 initially).

General description of the measure
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software.

For individuals, MTD for ITSA will be introduced in two phases:

from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
from April 2028, for those with qualifying income over £20,000 – newly and unexpectedly announced in the Spring Statement yesterday
The government remains committed to the future introduction of MTD for ITSA to partnerships – date yet to be announced.


The government have mentioned they may at some point in the future bring Limited Companies into a similar scheme but no definite plans as yet.

The qualifying income mentioned above is the total income from self employment and property of over £50,000 BEFORE expenses or taxes are deducted.

MTD for ITSA will require compatible software to

Create, store and correct digital records of income and expenses (from self-employment and property)
Send HMRC quarterly updates (summaries of the digital records)
Submit tax returns


The new rules come into effect from 6th April 2026, preparations for this need to start soon. HMRC will be getting in touch with tax payers to confirm whether they will need to sign up to MTD ITSA

07/04/2025

Changes to identity verification requirements for company directors, and individuals with significant control, come into effect from 8 April 2025 on a voluntary basis. Mandatory ID verification comes in for new appointments and incorporations from autumn 2025, which also marks the start of a 12 month transition period for existing directors to complete ID verification.

Companies House reform timelines

The Companies House reforms under the Economic Crime and Corporate Transparency Act are set to follow a clear timeline:

18 March 2025: third party providers able to register as an Authorised Corporate Service Provider
8 April 2025: the new identity verification requirements come into effect on a voluntary basis
Autumn 2025: mandatory identity verification for all company directors and People with Significant Control (PSC’s) on incorporation and appointment.
12 month transition period: existing directors and PSC’s will have a year to comply with the new requirements and so will be required to have completed identity verification by autumn 2026.