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Making Tax Digital pilot scheme for Income Tax

As part of the Making Tax Digital pilot, self-employed businesses can voluntarily use software to keep their business records digitally and send Income Tax updates to HM Revenue and Customs (HMRC), instead of filing a Self Assessment tax return.

This means you’ll see an estimate of how much tax you might owe as you go, rather than waiting until the end of the tax year.

By signing up to HMRC’s secure service, you’re helping to test a new way of working out your tax as part of the Making Tax Digital pilot.

You’ll be able to use software to report your Income Tax if you’re a sole trader with income from one business and your current accounting period ends after 5 April 2018.

If you have income from any other sources you may still have to report it using a Self Assessment tax return.

For further information please visit the GOV.UK website.

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