Jun 16, 2022

HMRC will be opening up the Making Tax Digital for income tax self assessment (MTD for ITSA) pilot to more taxpayers from 1 July 2022.

The pilot is a test for the official rollout in April 2024, and invites self-employed individuals and landlords to register.

Some taxpayers are already taking part in the pilot, but HMRC wants more agents to register to help trial the system.

From July, people with the following sources of income will be able to join:

  • self-employment (including multiple self-employments)
  • UK property
  • gift aid
  • PAYE income, including employment income and occupational pensions (excluding those with a coded out liability)
  • UK interest
  • UK dividends.

Taxpayers will need to have an accounting period from 6 April to 5 April to join the 2022/23 pilot, and have compatible software.

From April 2024, all businesses with annual income from self-employment or property above £10,000 will have to follow MTD rules. This will affect 4.4 million taxpayers, so HMRC wants the pilot to help smooth the process.

In a statement, HMRC said:

"We're progressing with the MTD for ITSA pilot and are currently working with software developers to bring in more customers for the 2022/23 tax year, allowing us to test the system and build in customer and agent feedback as we go.

"We will be testing the first quarterly submission with some of these customers from 6 July, after which we aim to open up the pilot more widely to some customer types."

Talk to us about your tax.

 

 

Get in contact with us