NEWS

MTD for income tax pilot extended

HMRC is extending the pilot for Making Tax Digital for income tax self assessment (MTD ITSA) to more self-employed workers and landlords.

From July, those taking part will be able to test MTD ITSA before April 2024, including their own internal processes for managing MTD.

Agents and customers are already taking part, and HMRC wants more agents to start signing up a small number of their clients to trial the system.

From April 2024, all businesses with annual income from self employment or property above £10,000 will have to follow MTD rules. 

Under MTD, the quarterly reporting is a summary, providing a total of the incomes and outcomes going through the business per quarter. As a result, there is not necessarily a need to report under each property address as it is an accumulation of the all the data that is required, HMRC said.

In a statement HMRC said: "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.  

"The update to agents is encouraging them to start considering whether they can bring some customers into the pilot this summer, providing them with an opportunity to test MTD for ITSA with their clients as well as playing a key role in testing the new system themselves before mandation in 2024."
 

 

22/06/2022

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REF: MC/NL/1.2