Should you volunteer to test MTD for ITSA?

By Adam Caplan, Partner

On 16 April 2025, HM Revenue & Customs (HMRC) launched the beta public testing phase of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA).

If you will be required to report income tax quarterly under MTD for ITSA from 6 April 2026, signing up now can help you prepare for the change and make sure you are ready to meet new compliance requirements.

HMRC may refine its reporting requirements under MTD for ITSA as a result of testing – volunteering to test the service means you’ll receive relevant updates and stay informed.

As a test volunteer, you will also receive dedicated support from HMRC.

Who can volunteer?

You can volunteer for MTD for ITSA provided you are a UK resident, have a National Insurance number, and have submitted at least one Self-Assessment tax return.

You must also be using an accounting period that runs from either 6 April to 5 April or 1 April to 31 March.

Make sure your tax records are up to date and that you have no outstanding tax liabilities.

Not everyone is eligible to volunteer – for example, those who are bankrupt or insolvent (or are going to be), are a partner in a partnership, or are subject to a compliance enquiry. You also cannot volunteer to test MTD for ITSA if you have income from a trust or if you use “averaging” or other arrangements because your profits vary between years.

If you have multiple income sources, they must be registered individually for MTD for ITSA.

A full list of qualifying and disqualifying criteria can be found on the HMRC website.

Choose your MTD-compatible software

In order to sign up for MTD for ITSA, you must first implement MTD-compatible software.

HMRC has provided a full list of software solutions that are compatible with MTD for ITSA.

Using software will help you to store digital records, send quarterly updates, and receive information from HMRC.

If you use an existing software, ask your provider if their software will work with MTD for ITSA.

While compatible software is mandatory for MTD for ITSA, the right tool can bring huge benefits to your business.

From automating invoices to providing real-time data analytics, cloud accounting software can perform a wide range of functions to help you manage your finances more effectively.

Whether you are brand new to cloud accounting or looking for an upgrade, an experienced accountant can help you choose the best software solution for your business needs.

Support with MTD for ITSA

The rollout of public beta testing for MTD for ITSA is designed to help HMRC resolve any issues with the service – but the benefits for testers should not be overlooked.

Signing up to test MTD for ITSA can help you get to grips with the new digital reporting requirements, ensuring you’re fully prepared for the mandatory transition in April 2026.

If you need support with navigating MTD for ITSA, our expert accountants are here to help.

We’ll help you understand the new requirements, optimise tax efficiency, and make the transition to MTD for ITSA as seamless as possible.

Get ready for Making Tax Digital – contact FFT today for expert advice and guidance.