MTD for individuals

HMRC wants individuals who are self-employed or have a property rental business to trial its Making Tax Digital for Income Tax service before it becomes mandatory. HMRC has changed the login process for its digital services for all business users; it now requires two-step verification. Lauren Herbert discusses in greater detail below.

MTD for income tax
HMRC are looking for volunteers to use its Making Tax Digital for Income Tax (MTDfIT) pilot scheme. The full scheme will become mandatory from April 2023 for individuals who are self-employed or have a property rental business with annual income of more than £10,000. If you want to get ahead of the game by complying with the new software and other requirements, joining the pilot would seem like a good plan.

MTD for self-assessment
If you complete annual self-assessment tax returns MTD will affect you even if MTDfIT doesn’t. As part of the process HMRC is making “multi factor authentication”, also known as two-step verification or 2SV, a requirement for all businesses and organisations using the Government Gateway to access its online services. Since 15th June 2021 you can only access your business tax account if you have set up 2SV.

If you haven’t logged in with HMRC recently, we recommend that you do so now, and set up 2SV by following the on-screen instructions. This will only take a couple of minutes.