As part of it’s the Making Tax Digital for income tax (“MTD ITSA”) project and specifically the informal review for smaller businesses, HMRC is scheduling meetings with key stakeholders, including this Institute, to discuss MTD ITSA in the context of businesses with turnover less than £30,000. Contact us before Monday 27 March to tell us your views. HMRC would also like to hear from agents on the MTD ITSA trial (see questions below).
Based on HMRC’s roadmap, HMRC’s current planned approach to beta testing (a type of user acceptance testing where the product team gives a nearly finished product to a group of target users to evaluate product performance in the real world) is as follows:
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Private beta service: (a ringfenced serviced used by a defined set of taxpayers/users) will operate in 2023/24 and 2024/25;
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Public beta service (a scaled-up service using a larger taxpayer/user base) will operate from April 2025. This date is driven by when the majority of core functionality is expected to be available in the MTD ITSA service. According to HMRC, some low volume functionality will continue to be developed and built in 2025/26 ahead of mandation from April 2026.
HMRC expects that businesses with non-5 April/31 March accounting periods will be able to join the private beta testing service from April 2024.
In the context of the MTD ITSA trial, HMRC would like feedback on the following areas:-
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What are the most important things from an agent perspective that you would like to see in the test strategy for MTD for ITSA from 2023 to 2026?; and
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What are the biggest taxpayer testing risks you see from an agent perspective?
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