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Everything you need to know to stop your business from running you.


What does the MTD delay mean for you and your business?

In parliament, the treasury announced a delay in the rollout of MTD for sole traders, partnerships, and landlords. 

Before today’s announcement, any sole trader or landlord with a total gross income of over £10,000 would have needed to keep their financial records digitally and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. 

Thankfully, HMRC realised that their software development was so delayed that the original plans for MTD for sole traders, partnerships, and landlords were just not possible to carry on with.

What has changed with this MTD delay?

  • The Go Live date has been delayed by 2 years. I.e. it takes effect from April 2026.
  • The threshold to fall into the scheme has been raised for individuals with more than £50,000 gross income who are sole traders or landlords. Individuals with between £30,000 and £50,000 of gross income will be added to the scheme from April 2027. 
  • Partnerships are now not part of the current rollout of MTD, but HMRC is committed to bringing them into the scheme in the future.

There were no communications about the basis period reforms which were part of the original rollout of MTD for sole traders, partnerships, and landlords.

MTD announcement

What do you need to do now for?

Keeping your records securely and digitally as mandated by the original vision for MTD is still a good thing to do. Whether or not you are legally required to do this. Therefore, if you haven’t already done so, we would recommend that you:

  1. Have separate bank accounts for your business, property and personal expenditure
  2. Use a cloud-based accounting system to keep track of your business and property related expenses.

Looking for more advice on this?  Get in touch!

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