Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the MTD for ITSA. Under the pilot, qualifying landlords and sole traders (or their agents) can use software to keep digital records and send Income Tax updates instead of filing a Self-Assessment tax return.
The option to sign-up as an individual for MTD for ITSA is currently only available to individuals using a recognised provider offering software that is compatible with MTD for ITSA.
HMRC recently shared the following update on the pilot to software developers.
‘As we progress the MTD ITSA pilot it is important that we manage it in a controlled way so that we can test and expand effectively. So, from 9th December, customers will only be able to sign up for the MTD ITSA Pilot through their software provider (in essence how it is currently happening). As we expand the pilot, this will enable HMRC and developers to ensure that all customers entering the pilot (and their agents where applicable) receive the support and guidance that they need.
Customers who are already participating in the Pilot can continue to do so. HMRC will be sharing more detail in early 2022 including the Pilot outline plan which will include a roadmap identifying when various customer types will be eligible to join MTD ITSA. MTD also continues to work on the Customer Support Model to support customers more come into the service from April 2022.’
It will be interesting to see what further sign-ups will be enabled once the pilot roadmap is published.