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Making Tax Digital For Income Tax Self Assessment

Important Update: the UK Government announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be mandated starting from April‌‌‌ ‌‌2026, rather than from April‌‌‌ ‌‌2024. (Announcement dated 19 December 2022.)


HMRC has issued sets of guidance to help those taxpayers likely to be affected by the Making Tax Digital for Income Tax Self Assessment (ITSA). The notes offer some clarification of the requirements involved. More guidance is expected as move closer to the implementation date of 6 April 2024.

Making Tax Digital (MTD) is already compulsory for VAT-registered individuals and organisations (on a compulsory or voluntary basis). MTD is the government’s initiative to make tax payments digital and encourage timely record keeping and payments.

Who must sign up for MTD ITSA

The guidance confirms the criteria involved with the Making Tax Digital for income tax requirements. From 6 April 2024 you must sign up for MTD ITSA if you:

  • are an individual,
  • are registered for Self Assessment,
  • were self-employed or collecting property income before 6 April 2023, and
  • have a qualifying income of more than £10,000.

Who cannot sign up for MTD ITSA

In addition, the guidance clarifies that you cannot sign up if you are a:

  • trustee, including a charitable trustee or a trustee of non-registered pension schemes,
  • personal representative of someone who has died,
  • Lloyd’s member, in relation to your underwriting business, or
  • non-resident company.

If your qualifying income is £10,000 or less, you do not need to sign up, but you can still choose to do so voluntarily.

The timescale involved

The MTD ITSA requirements must be met from 6 April 2024. Taxpayers who are eligible to sign up to MTD ITSA will need to submit their self assessment tax return for 2022/23 by 31 January 2024. HMRC will review the return and notify taxpayers (or their agents) if they need to sign up to MTD ITSA. This will involve ensuring that compatible software is used to complete and issue financial records.

Self employed individuals and landlords starting businesses after 6 April 2023 do not have to register for MTD ITSA until after their first self assessment tax return has been submitted.

Are you self-employed or a landlord?

Is your income more than £10,000pa?

Talk to the friendly team at Hargreaves Owen. We’ll explain what’s involved with Marking Tax Digital … how it affects you and what you need to do. Best of all, we’re here to help with straightforward, jargon-free advice. Contact us for an initial discussion without obligation. We’re here to help.

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