The day after the government’s announcement that MTD ITSA is going to be introduced in phases from 6 April 2026, Caroline Miskin, Anita Monteith and Ed Saltmarsh gathered for a live MTDtalk discussion.
What does the new approach mean for ICAEW members – in business and practice – and their clients? There is a lot to think about.
The consensus so far is that this gives time for more than just building the system and resolving the outstanding problems. MTD ITSA had first been scoped to begin back in April 2018. It now seems outdated and not particularly useful.
Following MTDtalk, the faculty would like to know:
- Regardless of the extra two years that have been allowed, will you be digitalising your or your clients’ business accounting records now? In this context, digitalising means using accounting software or spreadsheets to record transactions.
- What support would you like from ICAEW during the extended time that businesses now have to prepare? Webinars, live events, something else?
- How is your practice going to respond to the additional time? For example, will you still be investing in software now, or postponing making any changes for a year or two?
The Tax Faculty also referred to the UK’s growth agenda in MTDtalk. It asked how the tax system might be used to support growth. How could the policy requirement for a business to adopt digital accounting records for MTD ITSA be adapted to help the business to grow?
Please email any suggestions to Caroline Miskin.
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.