Katharine Arthur, Partner and Head of Private Client, has shared her insights on the challenges and critical considerations surrounding the HMRC’s Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) pilot program with AAT.

As part of the pilot, self-employed individuals and/or landlords earning over £50,000 annually can participate voluntarily. Participants are required to maintain digital financial records and send quarterly updates to HMRC using MTD-compliant software. Additionally, they must complete their tax returns by January 31 of the following year.

Katharine acknowledges the significance of the pilot as a preparatory step towards mandatory digital tax filings. However, she expresses concerns over the historical delays and the increased workload involved, which have made client participation in the pilot challenging. With an emphasis on the importance of timely and clear communication from HMRC to ensure a smooth transition for businesses, Katharine notes: “It’ll be important to participate in the pilot but it’ll be a challenge to persuade clients due to lack of confidence in HMRC and its systems.”

To read Katharine’s comments in full, visit the AAT article here.

Are you MTD ready?

Being prepared for the mandatory implementation of MTD before April 2026 is the best approach to remain tax compliant. For further advice on MTD, get in touch with Katharine directly or a member of our Private Client team.