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
-
Christmas gifts - the perennial tax question
It’s that time of year when thoughts turn to schmoozing customers and incentivising your workers with Christmas goodies. Choosing suitable gifts is easy, understanding the tax treatment less so. What’s to know?
-
Tax-efficient exit planning for owner managers
You are the sole director and shareholder of a trading group. You are planning to retire in the near future, and are looking at succession planning options. What different things could you look at?
-
MONTHLY FOCUS: CORPORATION TAX AND TRADING LOSSES
The ongoing high levels of running costs mean that more companies have (or will be) reporting trading losses. How can these be relieved efficiently and when may losses be restricted?
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.