HMRC to launch MTD for income tax pilot on 22 April

HMRC to launch MTD for income tax pilot on 22 April

Mar 15, 2024

HMRC will launch the first pilot for agents and accountants to trial out the Making Tax Digital for Income Tax Self Assessment reporting environment next month

The pilot will go live from 22 April 2024 and HMRC has written to tax agents and accountants asking them to get involved with the first phase of the trial, which will be targeted at firms with clients who are self-employed or landlords with an annual income over £50,000.

These people will be legally required to start keeping digital records and send quarterly updates of income and expenditure to HMRC using compatible software from April 2026. The system will be extended to those with an annual income over £30,000 from April 2027.

Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is being introduced by HMRC ‘to modernise the way self-employed individuals and landlords manage their tax affairs, helping avoid errors and get tax right’.

Craig Ogilvie, HMRC director of Making Tax Digital, said: ‘We want to ensure that this service meets the needs of you and your clients.

‘To support this, we are expanding our testing programme criteria for MTD ITSA. You will be able to sign up your clients from 22 April 2024.

‘Taking part will involve using software compatible with MTD to keep digital records and submit quarterly updates. This will give you the opportunity to get ahead of MTD changes with selected client(s) before it becomes mandatory, with access to our dedicated MTD customer support team.’

Any agent who wants to sign up to the trial will need an agent services account (ASA) as this will be required for signing up to MTD ITSA.

‘Week commencing 22 April 2024 we will send you an email with more information about how the testing programme will work, updated eligibility criteria and software choices, and how to sign up your clients,’ Ogilvie said.