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
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
-
Cutting the cost of a company car
You want to help your young son replace the ancient car he currently drives. The plan is for your company to buy it but for the running costs to be met by your son. That’s fine with him but is there a more tax and cost-effective alternative?