18 May 2018
HMRC has added two new software providers to its Making Tax Digital (MTD) for income tax pilot scheme, bringing the current total to four.
The software providers signed up to the MTD for income tax pilot will be required to supply reporting tools to those taking part in the pilot, in order for them to send income and expenses summaries to HMRC every three months.
Participating sole traders will then be required to submit a final report to confirm all income and expenses for the year, and to claim any allowances or reliefs they may also be entitled to.
Commenting on the addition of the two new software providers to the pilot, a spokesperson for HMRC said: ‘HMRC is working with the software industry to help them to bring a wide range of MTD products to market. Over 100 developers have registered an interest in doing so.’
A list of software suppliers for the MTD for income tax pilot can be found here. HMRC has stated that additional suppliers and software will be added to the list ‘as the pilot progresses’.
Meanwhile, MTD for VAT is currently being piloted, and will be mandated from April 2019.
MTD for income tax is not set to take effect until 2020, and the government has confirmed that keeping digital records and making quarterly updates will not be mandatory for taxes other than VAT before April 2020.