letters MTD with clipboard and pen

MTD - HMRC launch new interactive checker tool

16 October, 2024

HMRC have launched a new interactive Making Tax Digital (MTD) tool: Check if you need to use Making Tax Digital for Income Tax. 

MTD for Income Tax Self-Assessment (MTD ITSA) becomes mandatory for the first taxpayers from April 2026. The new tool is intended to make it simpler for taxpayers (and their agents) to understand if they are in scope of MTD ITSA and, if so, when they need to start complying with the requirements.  

The tool includes questions on:

  • MTD exemptions;
  • the reasons a taxpayer needs to submit a Self-Assessment return;
  • the relevant tax years a taxpayer will file a Self-Assessment return for; and
  • the taxpayer's MTD ITSA qualifying income in those years. 

It then plays back a result based on the answers, confirming that the taxpayer either:

  • may be eligible to apply for an exemption when that process opens;
  • will be within the scope of MTD ITSA; or
  • will not be within the scope of MTD ITSA.

The tool will also identify the next steps that taxpayers and agents should take in preparing for MTD ITSA and allow them to save or print a copy of the results and add their own administrative information e.g. client reference number. 

In completing the tool, taxpayers and their agents will need to consider what their qualifying income will be in the current tax year and the next one. For this reason, it cannot provide a definitive result.  However, HMRC believe that, for most taxpayers, it will provide a strong indication of their MTD obligations in 26/27 and 27/28. HMRC will however still confirm taxpayers’ obligations for each of these tax years, based on the information submitted in their 24/25 and 25/26 Self-Assessment tax returns. 

The tool does not ask about foreign income, and may not be suitable for those with more complex affairs. Further detailed guidance on calculating qualifying income in such cases can be found on GOV.UK and the ATT website .

You can find more information about MTD ITSA generally on the ATT's dedicated landing page.