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Get ready for the MTD ITSA pilot this July

Making Tax Digital (MTD) for income tax self-assessment (ITSA) will be mandatory from April 2024. However, HMRC is encouraging taxpayers to register early through the pilot scheme. It has now been announced that the pilot program will be expanded from July 2022 to allow more people to participate.

What is Making Tax Digital?

It appears that those who receive income from other sources, partnerships and receive certain fees through self-assessment, such as high-income child benefit contributions, remain temporarily excluded. Anyone wishing to obtain more information should contact their software provider or HMRC at mailboxmakingtaxdigital@hmrc.gov.uk.

MTD ITSA overview

From April 2024, the MTD ITSA will be enforced for taxpayers with self-employment or property income. You must comply with MTD for ITSA requirements from 6 April 2024 if your taxable income is more than £10,000 a year, whether that’s just from rent or rent and self-employment. This applies to rental properties and furnished holiday lets.

You must still file a self-assessment tax return (SA100) for the tax year before you comply with MTD for ITSA requirements. But once you do, you won’t have to complete a self-assessment tax return (SA100) each year. 

Registration and the pilot

Certain categories of taxpayers can register early to allow as much time as possible to familiarize themselves with requirements such as keeping digital records and sending quarterly updates.

Taxpayers using the pilot program are still required to file tax returns. However, the admissions criteria have so far been criticised as being very narrow. Additionally, the number of compliant software vendors is currently relatively small. As a result, participation in the pilot was very low. HMRC has now announced that taxpayers with the following reportable items will be able to join from July 2022:

  • self-employment(s) 
  • UK property 
  • Gift Aid 
  • Pay As You Earn income, including pensions
  • UK interest  
  • UK dividends.  

MTD ITSA exclusions

It appears that those who receive income from other sources, partnerships and receive certain fees through self-assessment, such as high-income child benefit contributions, remain temporarily excluded. Anyone wishing to obtain more information should contact their software provider or HMRC at .

Count on Cardens for MTD support

Despite making the introduction of Making Tax Digital phased, the change to digital record keeping can be slightly overwhelming, particularly if you have many years of records to sort through. Talk to our team to find out how we can help you manage the MTD process at

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