Withdraw the rollout of MTD ITSA planned for April 2026

Background

We call on the Government to cancel the rollout of Making Tax Digital for Income Tax (MTD ITSA) in April 2026. This policy will impose costly software, extra reporting, and harsh penalties on 4.2 million sole traders and landlords, damaging small business and the wider economy.

Additional details

MTD ITSA will hit 4.2 million sole traders and landlords with extra costs, red tape and penalties. Instead of one annual return, they must submit five, using software they are forced to buy. Many face errors, fines or closure. Sole traders are the backbone of the UK economy, creating jobs and vital services. At a time of high costs and weak growth, this policy risks driving thousands out of business, reducing tax revenues and damaging communities.