Readers are reminded that Making Tax Digital for VAT is mandatory from 1 April 2022 for VAT registered businesses with turnover below the £85,000 VAT registration threshold. Note that at present HMRC has no plans to introduce a soft landing for the digital links aspect of MTD for VAT for these businesses. The Institute is discussing this with HMRC. HMRC has also recently updated the list of software currently available for MTD for income tax self-assessment (“ITSA”) which commences in April 2024.
This page was updated on Friday, 25 February 2022 to show details of the MTD for ITSA compatible software products that are available. The changes include updating the list of software products that are ‘available now’, which are those that have been actively tested with live taxpayers and met HMRC’s minimum functional specification.
The page will also list 15 new products, not previously shown on the page, that are in the late stages of development. These ‘in development’ software products are ready and will shortly start to be tested with live taxpayers. Once that final taxpayer testing has been performed, they will then be moved to the ‘available now’ section.
HMRC continues to work closely with software developers to support them in developing a range of software products to satisfy demand within MTD for ITSA. Regular updates will be made to this page as new products become available.
HMRC is also working on delivery of a new dynamic software tool which is due later in the year. This will provide a more interactive experience for taxpayers to view possible software options and find the one that is most suitable for them.