Making Tax Digital (MTD) for Income Tax. Are you eligible to take part in the MTD Pilot?

UPDATE: HMRC has re-opened the pilot to new participants.

At a glance

  • Taxpayers and their agents can sign up and participate in a voluntary Making Tax Digital (MTD) for Income Tax pilot scheme (private beta). 
  • Signing up to the Pilot will mean that you will allow your software to transmit your accounting data to HMRC every three months.
  • Only certain taxpayers are currently eligible to participate.

Are you eligible to take part?

  • Use our MTD pilot: eligibility checker to check whether you can sign up to volunteer under the pilot scheme.

Recent changes

  • After pausing the pilot in February 2023, HMRC have now confirmed that the MTD  pilot (private beta) will expand from April 2024. A larger but still restricted pool of sole traders and landlords will be able to volunteer. 
  • Making Tax Digital for Income Tax is currently voluntary. It will become Mandatory from 6 April 2026 in phases based on your total annual income from self-employment or property. Taxpayers can either: 
    • Volunteer to use the service now (for self-employment and property income sources), or 
    • Continue to send self-assessment tax returns as normal, and sign up to MTD for income tax when it becomes mandatory.
  • Most sole traders and landlords will be able to volunteer for the MTD pilot from April 2025. 
  • The Government is keeping plans for extending MTD to sole traders and landlords with income below £30,000 under review.  
  • Data has show that in the three years since the pilot scheme began 1015 people have participated, of these, only 218 or approximately 21% are landlords with property income. The numbers have fallen dramatically since the first year, 2018-2019, from 877 to 26 in 2020-2021 and as of January 2022, only nine were participating.

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