MTD ITSA guidance

HMRC issued four sets of guidance to guide taxpayers through the process of signing up for Making Tax Digital for income tax self-assessment (MTD ITSA) and how they can actually meet the requirements.


Here are the four documents:


Check if you can sign up for Making Tax Digital for Income Tax

Using Making Tax Digital for Income Tax

Sign up as an individual for Making Tax Digital for Income Tax

Check when to sign up for Making Tax Digital for Income Tax


The documents don’t divert from the core foundations of the project: taxpayers must meet the requirements if they are registered for self-assessment, get income from self-employment or property, or both, and their total qualifying income is more than £10,000.


But the guidance does offer further clarification on other areas that are regularly brought up by accountants.

Check if you can sign up for MTD ITSA for Income tax

Those that can sign up for MTD ITSA

The Check if you can sign up for MTD ITSA guidance explains that non-doms do not need to meet the requirements in relation to their foreign income. Only their UK self-employment income would contribute to their qualifying income.


This guidance, however, does outline the others that can’t sign up. These include: a trustee, including a charitable trustee or a trustee of non-registered pension schemes; personal representative of someone who has died; Lloyd’s member, in relation to their underwriting business; and non-resident company. But they can voluntarily sign up if their qualifying income is above £10,000.


The personal account is also set to play a bigger role. The guidance states that businesses “may need to send HMRC information on personal income sources” after finalising their business income. This could include savings or dividend income.

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