MTD pilot for income tax extended

HMRC’s making tax digital pilot is now open to landlords with income from furnished holiday lettings, in addition to other UK-resident landlords and sole-trader businesses. Those with income from any other source are not yet eligible to take part in the pilot.

The guidance on who is eligible to join the pilot previously contained a specific exclusion in respect of furnished holiday lettings. This was amended at the end of April to confirm that those able to sign up to the MTD pilot for income tax must be:

• sole traders with income from one business, or who rent out UK property, or both;
• up to date with self-assessment tax returns and payments; and
• resident in the UK for tax purposes.

Currently unable to take part are those who need to report:

• income from any other sources; or
• any other payments that are either taxable or in respect of which tax relief is claimed.

See HMRC’s guidance Use software to send income tax updates, bit.ly/2Jv4q0p.