HMRC has shared the following update on the Making Tax Digital income tax self assessment (MTD ITSA) pilot with software developers:

“As we progress the MTD ITSA pilot it is important that we manage it in a controlled way so that we can test and expand effectively. So, from 9 December, customers will only be able to sign up for the MTD ITSA pilot through their software provider (in essence how it is currently happening). As we expand the pilot, this will enable HMRC and developers to ensure that all customers entering the pilot (and their agents where applicable) receive the support and guidance that they need. 

Customers who are already participating in the pilot can continue to do so. HMRC will be sharing more detail in early 2022 including the pilot outline plan, which will include a roadmap identifying when various customer types will be eligible to join MTD ITSA. MTD also continues to work on the customer support model to support more customers coming into the service from April 2022.” 

ICAEW’s Tax Faculty notes that the public beta pilot, which allowed taxpayers to sign up to MTD ITSA directly from gov.uk, was extremely narrow in scope, so the impact of this change is limited. What is critical is that the pilot plan and roadmap (when published) allow for a sufficiently broad and deep pilot.

Further information:

• Sign up as an individual for Making Tax Digital for Income Tax - GOV.UK (www.gov.uk)
• Sign up your client for Making Tax Digital for Income Tax - GOV.UK (www.gov.uk)
• MTD income tax self assessment | ICAEW
• MTD for ITSA - back to basics and myth busting | ICAEW