HMRC has relaunched the beta testing for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) as of 22 April 2024. Although MTD ITSA will not be mandatory until at least 6 April 2026, eligible individuals have the opportunity to participate in the pilot programme now.

Currently, five software products have been approved by HMRC as compatible with MTD, with an additional 21 in development. The approved software includes:

• 123 Sheets
• Intuit QuickBooks Online
• Sage Accounting
• SE_Reports
• Self Assessment Direct

All software must meet HMRC’s minimum functionality standards. If your accounting software is not listed, it may soon be approved by HMRC.

To qualify for the pilot, your tax affairs should be straightforward and up to date. Restrictions apply; for example, members of partnerships or those subject to the High-Income Child Benefit Charge cannot participate. Individuals with jointly owned rental properties or furnished holiday lettings are also currently excluded.

If you are interested in joining the pilot testing, please contact us for guidance on preparing for the new tax regime.