Accounting News

HMRC updates MTD ITSA guidance

May 1, 2022 | Financial news, HMRC, Making Tax Digital, Self Assessment, Self employed

HMRC has clarified which taxpayers can sign up for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) voluntarily.

From 6 April 2024, individuals with self-employment or rental income over £10,000 will be required to register for MTD ITSA. This means that all records will need to be kept digitally, with quarterly updates submitted to HMRC, and a final declaration made at the end of the year. Individuals within MTD ITSA will no longer be required to submit annual self-assessment returns. The due date for income tax payments remains 31 January following the end of the tax year. To help test and develop the service you can sign up to use MTD voluntarily now if you’re:

• a UK resident;
• registered for self-assessment with no outstanding tax returns or tax payments; and
• a sole trader with income from one business, or a landlord who rents out UK property. You cannot sign up yet if you need to report:

You cannot sign up yet if you need to report:

• income from any other sources; or
• an income tax charge, e.g. the High Income Child Benefit Charge or annual allowance pension tax charges.

If you do join, you must still submit the tax return for the previous tax year