HMRC pauses making tax digital for income tax pilot

HMRC has paused its making tax digital for income tax self assessment (MTD for ITSA) pilot – with only 115 taxpayers currently active in the voluntary scheme according to a response to a freedom of information request filed by Saffery Champness.

Originally scheduled to launch in April 2018 the government confirmed in December 2022 that it was delaying the phased implementation of MTD for ITSA to April 2026. However HMRC said most taxpayers would be able to join voluntarily before the mandated implementation date.

The tax authority began an expanded programme of recruitment of participants into the MTD for ITSA pilot scheme in July 2022 but said this was paused in November ahead of the confirmation of the implementation delay. The FOI response also confirmed that HMRC will soon launch a refreshed testing strategy to reflect the revised timetable.

Lucy Woodward partner...