Making Tax Digital is never far out of the news, and the last few months have been no exception. The focus recently has been MTD for Income Tax Self-Assessment (ITSA). From July this year the criteria for joining the MTD for ITSA scheme will be expanded. And this means that more taxpayers will likely be able to participate.
HMRC has announced that from July 2022 taxpayers with the following income types will be able to join the MTD for ITSA pilot scheme:
- self-employment (including multiple self-employments)
- UK property
- Gift Aid
- Pay As You Earn income, including employment income and occupational pensions (excluding those with a coded out liability)
- UK interest
- UK dividends
HMRC want to encourage more agents to begin signing up a small number of their clients. They stated: "If you are interested in joining, we suggest you review your client list now and see who is likely to be eligible based on the criteria" and that those who request to take part "will have the benefit of testing MTD ITSA before 2024, including their own processes for managing MTD".
MTD for ITSA is due to go fully live on 6 April 2024 for all businesses with annual income from self-employment or property above £10,000, after the government postponed mandation of the scheme by a year in September 2021. General partnerships are currently due to be mandated into MTD for ITSA from 6 April 2025.
You need to sign in or register before you can add a contribution.