Tax Alert - HMRC launching Making Tax Digital pilot scheme today

HMRC is today launching a pilot scheme for Making Tax Digital, the controversial proposal for quarterly reporting for landlords and the self-employed.

Ahead of the new MTD rules being introduced in April 2026, tax agents will from today be allowed to sign up to the pilot for MTD, subject to having an agent services account. The pilot is targeted at firms with clients who are self-employed or landlords with an annual income over £50,000.

Making Tax Digital for Income Tax Self Assessment is being introduced by HMRC “to modernise the way self-employed individuals and landlords manage their tax affairs, helping avoid errors and get tax right”.

Craig Ogilvie, HMRC director of Making Tax Digital, says: “We want to ensure that this service meets the needs of you [tax agents] and your clients. To support this, we are expanding our testing programme criteria for MTD ITSA. You will be able to sign up your clients from 22 April 2024.

“Taking part will involve using software compatible with MTD to keep digital records and submit quarterly updates. This will give you the opportunity to get ahead of MTD changes with selected client(s) before it becomes mandatory, with access to our dedicated MTD customer support team.”

HMRC, which will publish other specific criteria setting out which client accounts will qualify for the testing today, will hold a live online session on Friday of this week from 2pm to 2:45pm.

HMRC says of the Friday session: “Taking part in testing is a good opportunity to familiarise yourself [agents] and a small number of your clients with Making Tax Digital for Income Tax Self Assessment well ahead of 2026. This will help you to prepare your business and be ready to support the rest of your clients.

“You need to make sure both yours and your client’s record-keeping software is compatible with Making Tax Digital before you sign up. You can check compatible software options.

“If the software that you or your client prefer to use is not listed, you should contact the software provider to find out when they plan to join Making Tax Digital.”

From April 2026, self-employed individuals and landlords with total income from self-employment and property over £50,000 will be legally required to keep digital records and send quarterly updates to HMRC using compatible software. This will be extended to those with an income over £30,000 will need to do this from April 2027.

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