12 Apr 2024
The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that just five Making Tax Digital for income tax self assessment (MTD for ITSA) software products are ready for beta testing on 22 April.
On 22 April, private beta testing of MTD for ITSA will begin. The ICAEW warns that HMRC has revised the list of software products that support MTD for ITSA, and the new list outlines five developers that are set to release their MTD for ITSA products on 22 April.
Chosen software must be able to create and store digital records of business income and expenses; send quarterly updates; receive information from HMRC; and make your final declaration by 31 January as part of the submission of tax returns.
HMRC recommends checking with the software providers when choosing software to ensure it suits businesses' needs.
Commenting on the issue, Caroline Miskin, Senior Technical Manager at the ICAEW, said: 'Choosing the right software is a critical decision. Software products do need to comply with HMRC's minimum functional standards but these are quite minimal. This means there will be very significant differences between products.
'Cost is obviously a major consideration. It is disappointing that a wider range of software is not yet available.'