HMRC launches MTD ITSA toolkit
HMRC has launched a new online tool to help taxpayers determine whether they need to use Making Tax Digital for Income Tax. What is it and how can you use it?
MTD ITSA is being phased in from April 2026 and involves quarterly reporting of income and expenses to HMRC. Broadly, those with income from self-employment and/or property income exceeding £50,000 will be required to use it from April 2026, and those with such income exceeding £30,000 will join from April 2027. However as with most HMRC initiatives, there are exceptions and so HMRC has launched an online tool that taxpayers can use to check whether they need to sign up for MTD.
The tool itself is also fallible, as it cannot currently take into account any foreign income, for example, from a holiday home that is rented out.
Further guidance confirms which groups of people are automatically exempt from MTD ITSA, and who can apply for an exemption so it is worth checking the tool out well in advance of April 2026.
Related Topics
-
Budget 2024: looking behind the speech
The Budget included headline-grabbing tax changes but others were buried in the fine print. What were they and how might they affect you?
-
Proof of employment expenses now required
HMRC now insists on evidence of employee expenses claimed through PAYE. What records do you need to keep?
-
HMRC expands agent-related services
HMRC has written to the CIOT to confirm updates to the services provided on the Agent Dedicated Line. What’s changed?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.