MTD is all about digital record keeping and providing HMRC with quarterly updates to reduce errors which, in theory, will save time. Whilst VAT-registered businesses have demonstrated that MTD can work, we are all facing economic challenges and most need more time to prepare for MTD.
The government is listening!
MTD for smaller self-employed individuals (who are not VAT registered) and landlords has been postponed for a further couple of years to April 2026. Even then, your income must be over £50,000 to join MTD – a substantial increase from the £10,000 originally proposed.
If your income is over £30,000, you will be required to sign up from April 2027.
At this juncture, the government is planning to review how those with self-employed/property income under the £30,000 threshold; and partnerships, are best to meet their income tax reporting obligations. Rest assured, once their review has been completed – businesses, taxpayers, and professional bodies will be consulted before any further plans are announced. As soon as we know more, we’ll keep you updated – it will come.
Our tax system needs to keep up with the times and the government is hoping that those who will be affected can sign up before they are required to do so. In the meantime, thank you for listening to us and giving us more time to prepare and our clients more time to adapt to a new way of working.
