More taxpayers to take part in making tax digital for income tax pilot

HMRC is planning to bring in more taxpayers to the making tax digital for income tax self assessment (MTD ITSA) from 1 July 2022.

In a letter to tax agents HMRC said: ‘We want to ensure [MTD ITSA] is well tested before mandation and that agents and customers have opportunities to feedback on how it will work in practice. That’s why we’re running a pilot inviting agents to recommend clients who can help us test and learn.’

From July taxpayers with the following income types will be able to participate in the pilot:

• self-employment (including multiple self-employments);
• UK property;
• gift aid;
• PAYE income including employment income and occupational pensions (excluding those with a coded out liability);
• UK interest; and
• UK dividends.’

 Taxpayers will need to have an accounting period that aligns to the tax year to join the 2022-23 pilot as well as have MTD...