MTD ITSA: A Statement from Dext

A statement from Dext, in light of HMRC’s recent announcement on the postponement of MTD for ITSA: 

HMRC have announced a delay to MTD for ITSA, and an increase in the income reporting level. However, the fundamental, practical challenges of servicing self-employed & landlord clients remain. At Dext, we will continue to focus on this. 

If you missed HMRC’s announcement, these were the headlines: 

• A two-year delay until April 2026 for mandatory MTD ITSA filing
• Minimum income reporting level increased to £50,000, with those earning more than £30,000 mandated to join the scheme in 2027
• The situation for landlords and sole traders earning less than £30,000 will be reviewed to see if MTD ITSA can be shaped to meet the needs of smaller businesses
• Partnerships will not be brought into MTD for ITSA as previously planned in 2025
• Points-based penalty system to be extended to MTD ITSA filers when they join 

Our accountant and bookkeeping partners have expressed a variety of views in response to this news. We understand the frustration that some may feel, given the efforts they’ve gone to in preparation. However, we’d like to express our support for the reasoning behind HMRC’s decision. At a time of economic uncertainty, the decision to postpone major legislative change should help accountants, bookkeepers and their self-employed and landlord clients better navigate this challenging period. Additionally, it will give HMRC the time to ensure MTD for ITSA is fully operational for taxpayers and tax agents come April 2026. 

At Dext, we are committed to providing a solution that customers can use both now and during the extended build-up to April 2026. Dext Prepare for MTD ITSA makes it much easier for those clients to accurately capture their accounting data, while helping accountants and bookkeepers to be more productive and efficient. Now, with more time to fine-tune our existing product offering for MTD ITSA, we plan to work alongside HMRC to make it even better for existing and new customers.

While Dext was, and still is, ready for MTD ITSA, we will continue to modify our solution in line with any changes or updates introduced by HMRC.

At Dext, we believe the use of technology and automation in accounting is on a one-way trajectory – the updated MTD ITSA timeline doesn’t change this. 

The recent extension is a great opportunity for self-employed and landlord clients, alongside their accountants and bookkeepers, to get ahead of the game and familiarise themselves with what’s to come. 

If you have any questions on how Dext can help you with your self-employed and landlord clients, please do not hesitate to get in touch. We're here to support you throughout and beyond the run-up to April 2026.

Sabby Gill, Chief Executive Officer at Dext