Making Tax Digital: Income Tax Self-Assessment Pilot
HMRD are running a pilot of Making Tax Digital Income Tax Self-Assessment (MTD ITSA) although they are not actively promoting it as yet.
In order to join the pilot, taxpayers need to have maintained digital records and have software compatible with MTD.
At the present time, you can only sign up through a software developer. You can join the pilot if you meet the following criteria:
· Your accounting period aligns exactly with the tax year (NOT 31st March)
· You are a UK tax resident
· You have submitted at least one tax return and are currently registered for self-assessment
· You are up to date with your taxes (no time to pay agreements in place or outstanding tax bills)
· Your non-MTD income/claims are considered to have functionality (e.g. employment income, UK dividends, UK bank interest, gift aid relief claims)
· You pass HMRC’s check against a whitelist of eligible taxpayers.
It is expected that HMRC will provide MTD notices over the coming months with further information. They expect tens of thousands of taxpayers to sign up to the pilot in the 2022/23 tax year, followed by hundreds of thousands in the 2023/24 tax year.
For further information and advice get in touch with us today.