HMRC launches MTD ITSA toolkit
HMRC has launched a new online tool to help taxpayers determine whether they need to use Making Tax Digital for Income Tax. What is it and how can you use it?
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HMRC clarifies treatment of averaging relief under MTD IT
HMRC has updated its guidance to explain how averaging relief claims will operate under Making Tax Digital for Income Tax (MTD IT). The clarification addresses concerns about how farmers and creators will claim relief once quarterly reporting becomes mandatory. What has changed?
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Double up on the employment allowance
You’re the sole shareholder of a limited company which employs several members of staff. You’re working on plans to start another business with an ex-colleague. Can both businesses benefit from the full employment allowance (EA)?
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VAT cut for children's holiday activities over summer
The government has announced a temporary reduction in the rate of VAT applying to certain children's holiday activity programmes during the summer holidays. The measure is intended to help families with childcare costs during the school break. What has changed?
MTD ITSA is being phased in from April 2026 and involves quarterly reporting of income and expenses to HMRC. Broadly, those with income from self-employment and/or property income exceeding £50,000 will be required to use it from April 2026, and those with such income exceeding £30,000 will join from April 2027. However as with most HMRC initiatives, there are exceptions and so HMRC has launched an online tool that taxpayers can use to check whether they need to sign up for MTD.
The tool itself is also fallible, as it cannot currently take into account any foreign income, for example, from a holiday home that is rented out.
Further guidance confirms which groups of people are automatically exempt from MTD ITSA, and who can apply for an exemption so it is worth checking the tool out well in advance of April 2026.
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