SALF920 - Self Assessment: the legal framework: Overview and legislation: Legislation
Section 60 of the Finance (No. 2) Act 2017 inserted section 12C and Schedule A1 into the Taxes Management 1970. This was amended by Finance (No.2) Act 2026 [256+]
A commencement order was made by The Finance (No. 2) Act 2017, Sections 60 and 61 and Schedule 14 (Digital Reporting and Record-Keeping) (Appointed Day) Regulations 2021. The appointed day was 6th April 2024 (2021/1079) amended to 6 April 2026 by The Finance (No. 2) Act 2017, Sections 60 and 61 and Schedule 14 (Digital Reporting and Record-Keeping) (Appointed Day) (Amendment) Regulations 2024 (2024/422).
The Finance (No. 2) Act 2017, Sections 60 and 61 (Digital Reporting and Record-Keeping) (Appointed Day and Revocations) Regulations 2026 (SI2026/356), made 24 March 2026, revokes SI2021/1079 and SI1024/422 and amends the appointed day on which to sections 60(1) to (3) and 61(2) to (5) of the Finance (No. 2) Act 2017(b) come into force to 1st April 2026.
Schedule A1 confers powers on the Commissioners to make regulations requiring or authorising certain persons and certain partnerships (“relevant persons” and “relevant partnerships”) to take steps relating to digital reporting and record keeping (i.e., Making Tax Digital). Relevant persons and relevant partnerships are defined as those who are carrying on “relevant activities”. Relevant activities are, in turn, defined as activities that would give rise to profits or other income chargeable under Part 2 or 3 of ITTOIA if the person were UK resident. It can thus be seen that the territorial scope of Schedule A1 extends beyond those carrying on such activities in the UK. Regulations then limit this by setting out various exemptions for MTD for ITSA.
The Income Tax (Digital Requirements) Regulations 2021 made regulations under Schedule A1 TMA 1970, to come into force on 6 April 2024. SI 2021/1076 was amended by SI 2024/167 and both were revoked on 23 March 2026 upon the making of SI2026/336 The Income Tax (Digital Obligations) Regulations 2026. SI2026/336 came into force from 1 April 2026.
Tertiary legislation was published in January 2025 and updated in March 2026 (see Making Tax Digital for Income Tax: Quarterly update direction and Making Tax Digital for Income Tax: digital record keeping direction).