26th
Apr 2024
HMRCs controversial Making Tax Digital to introduce quarterly online reporting for self-employed and landlords has had a ‘soft’ launch this week.
With the MTD regulations coming into force in April 2026, tax agents are being encouraged to try out the pilot scheme if they have an agent services account. HMRC is targeting firms with clients who are landlords with an income over £50,000 or self-employed.
According to HMRC it is introducing Making Tax Digital for Income Tax Self-Assessment “to modernise the way self-employed individuals and landlords manage their tax affairs, helping avoid errors and get tax right”.
HMRC director of Making Tax Digital Craig Ogilvie, says: “We want to ensure that this service meets the needs of you [tax agents] 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.”
HMRC has also published other specific conditions detailing which client accounts will be tested and on Friday will hold a live online session on Friday 26th from 2pm to 2.45pm.
HMRC says of the Friday session: “Taking part in testing is a good opportunity to familiarise yourself [agents] and a small number of your clients with Making Tax Digital for Income Tax Self-Assessment well ahead of 2026. This will help you to prepare your business and be ready to support the rest of your clients.
“You need to make sure both yours and your client’s record-keeping software is compatible with Making Tax Digital before you sign up. You can check compatible software options.
“If the software that you or your client prefer to use is not listed, you should contact the software provider to find out when they plan to join Making Tax Digital.”
As from April 2026 landlords and self-employed with income of over £50,000 will have to keep digital records using compatible software and send quarterly reports to HMRC; from April 2027 this will extend to those with an income of more than £30,000.
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