Subject to the income exemptions, the requirements of MTD for income tax apply to all persons carrying on a trade, profession, vocation or property business unless they are excluded persons or are carrying on excluded activities or they fall within the digital exclusions. Each of these exceptions is explained below.
Scope of MTD IT and HMRC guidance
MTD IT applies to trading and property income chargeable to income tax under parts 3 and 4 of ITTOIA 2005, as set out in TMA 1970 schedule A11. This is subject to exceptions set out in that section, and outlined below. The main secondary legislation is SI 2021/10762. HMRC will determine who is within MTD IT based on the information included on the trading and property pages of the tax return.
HMRC guidance on MTD IT can be found at Making Tax Digital for Income Tax. This page provides links to guidance covering signing up as an individual and, as an agent, signing up clients, using MTD IT, finding software, and creating an agent services
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Web page updated on 17 Mar 2025 17:37