The HMRC MTD director Craig Ogilvie has issued a statement encouraging sole traders and landlords to engage with the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) initiative.
Scheduled to take effect in two stages – April 2026 for incomes above £50,000 and April 2027 for incomes above £30,000 – MTD for ITSA will necessitate the use of digital tools for tax record maintenance and quarterly updates.
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Ogilvie highlighted the benefits of participating in the current testing programme, suggesting that early familiarisation with the system could ease the transition.
Ogilvie said: “Six months may feel like a long time away, but our advice would be to get ahead of the game now with our testing programme.”
The director sought to alleviate concerns about the frequency of tax submissions under the new system, clarifying that the quarterly updates are automated summaries generated by the software.
He described the updates as a streamlined method of bookkeeping that maintains regular contact with HMRC.
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By GlobalDataFeedback from the testing programme has been favourable, with over 2,000 updates successfully submitted.
Ogilvie also addressed the necessity for compatible software, acknowledging the availability of both free and paid options to suit different business needs.
He emphasised the importance of selecting the right software to ensure integration with existing financial records.
The software is designed to provide ongoing tax estimates, which could facilitate better financial planning and mitigate the risk of unexpected tax bills.
Craig added: ”Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now’s the time to start preparing.
“MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return.
“There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it.”
