While participation in Making Tax Digital for Income Tax Self Assessment (MTD ITSA) isn’t mandatory until at least April 6, 2026, certain individuals can opt into HMRC’s pilot testing. The beta testing of MTD ITSA was reintroduced by HMRC on April 22, 2024. Currently, HMRC has listed just five software products as compatible with MTD, with an additional 21 in various stages of development.

The currently compatible products include: 123 Sheets, Intuit QuickBooks Online, Sage Accounting, SE_Reports, and Self Assessment Direct.

Each product must meet HMRC’s minimum functionality standards. If your current accounting software isn’t listed, it may soon gain HMRC approval. To participate in the pilot, you must be current with your tax returns and have relatively simple tax affairs; for instance, you cannot be a partner or subject to the High Income Child Benefit Charge. Those with jointly owned rental properties or furnished holiday lettings are also currently ineligible for the pilot program. If you’re considering joining the pilot testing, feel free to discuss with us, and we can assist you in preparing for the new system.