There’s still time to sign up to the MTD for Income Tax trial
By Chris Campbell, Head of Tax (Tax Practice and Owner Managed Business Taxes)
6 August 2024
We look at the latest position on the Making Tax Digital (MTD) for Income Tax trial, and signpost the support available to help our members get ready for the change.
On 22 April 2024, HMRC launched the private beta phase of the MTD for Income Tax trial. This new phase enables a larger (but still restricted) pool of self-employed taxpayers and landlords to test HMRC’s systems, as well as their own readiness for MTD.
Only self-employed taxpayers and landlords who use compatible software can take part in this phase, with more software providers expected to become compatible in the coming months. Following this, the trial will enter the public beta phase, so that full testing can take place ahead of MTD mandation in April 2026.
The importance of getting involved
ICAS is encouraging our member firms to register some of their clients for the private beta. Doing so will allow your practice to properly prepare and test the compatibility of your own systems (and those of your clients) ahead of implementation. If every tax agent volunteered to put a handful of clients into the trial, this would give HMRC a broad spectrum of self-employed taxpayers and landlords to ensure thorough testing during the period where a more lenient penalty system is in place.
Taking part in the private beta will also give you access to HMRC’s dedicated MTD support team. HMRC has advised that this team will be able to provide the taxpayer’s involved in the trial with full self-assessment support, as well as any guidance they need on MTD compliance. This support will, however, only be available to taxpayers who register in the 2024/25 tax year.
HMRC event for agents
HMRC is hosting an in-person MTD for Income Tax event at their Glasgow office on Thursday 19 September 2024. The event is specifically for agents and software developers with clients who will need to use MTD for Income Tax. At the event, you will find out more about the testing phase (including the extra support on offer), have access to hands-on support to sign up to the trial and be able to ask HMRC your MTD-related questions.
I will be speaking as part of the event panel, along with Craig Ogilvie (HMRC MTD Director) and Rebecca Benneyworth (Chartered Accountant and leading tax expert).
There are limited spaces available for this event, so if you have clients who are eligible and ready to join the MTD testing phase, please email mailboxmakingtaxdigital@hmrc.gov.uk no later than 30 August 2024 to secure your place.
By emailing HMRC, you are agreeing to be contacted by HMRC before, during and after this event. As this event is not hosted by ICAS, any queries you may have relating to this event or its terms and conditions should be directed to the event organisers directly.
Upcoming ICAS webinar
We will also be running a webinar for our members and students on Thursday 26 September focused on preparing your practice for MTD for Income Tax. We are delighted that Craig Ogilvie (HMRC MTD Director) and Sam Wood (HMRC MTD Agent Engagement Lead) will be joining us to offer their insights into how MTD for Income Tax will impact you and your clients.
This is your chance to hear directly from the HMRC experts leading on delivering this change about the latest developments, including how to get early access to test the service before it becomes a legal requirement from April 2026.
Our panel will explore the voluntary testing programme, including eligibility and early enrolment benefits, and share insights into penalties for late submission and payment, especially during the transition period. HMRC’s experts will also provide clarity on quarterly updates, clarify who may be exempt and explore how MTD for Income Tax aligns with HMRC’s broader digitalisation strategy to improve services for taxpayers and agents.
Sign up is now available here.
Let us know your views
We welcome your views, which help inform our work on consultations or other tax-related matters. ICAS responds to many tax calls for evidence and consultations, as well as producing tax policy papers and reports. We also regularly attend meetings with HMRC at which service levels, delays and other issues are discussed, and we raise problems being encountered by members.
Please email tax@icas.com to share your insights and feedback.
