HMRC relaunched private beta testing of making tax digital income tax self assessment (MTD ITSA) on 22 April 2024. HMRC’s revised guidance is available on Making Tax Digital for Income Tax - GOV.UK (www.gov.uk). 

The most significant change is that it is now possible to sign up directly from gov.uk. HMRC is currently focusing on sign-ups by agents, but it is also possible for taxpayers to sign-up. 

Before signing up it is essential to check with your software developer. Just five products are listed as being ready, with a further 21 listed as being in development. All products have to meet HMRC’s minimum functionality standards to be listed. However, HMRC does not approve or recommend software and each user needs to carry out due diligence including checking that the software product meets security standards and the needs of the taxpayer and their agent. 

The criteria for joining the pilot have been expanded slightly and can be summarised as follows:     

Private beta testing in 2024/25 is expected to be small scale before ramping up in 2025/26 in advance of mandation in 2026/27 for taxpayers with gross income from property and self-employment of more than £50,000. Taxpayers with gross income from property and self-employment of more than £30,000 will be mandated from 2027/28. The position of taxpayers with turnover below this threshold is being kept under review. 

Further information: 

• 24 April 2024: ICAEW Tax Faculty webinar on what to consider before signing up MTDtalk April 2024 | ICAEW 
• 26 April 2024: HMRC host a live online session where agents can find out what the testing involves and who can take part 
• ICAEW MTD hub (being updated)