All self employed and landlords with income over £20,000 will have to file quarterly returns under Making Tax Digital for Income Tax from 2028

Sep 18, 2013
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The government is also looking at extend MTD to those with income less than £20,000, which it wants to pull into the system, forcing them to report quarterly and buy software specifically for the purpose.

As part of the ongoing rollout of MTD, the government said it ‘will continue to explore how we can best bring the benefits of digitalisation to a greater proportion of the four million sole traders and landlords who have income below the £20,000 threshold’.

MTD for Income Tax will begin in April 2026 for sole traders and landlords, but only those that have an income of over £50,000. This will be extended to those earning over £30,000 in 2027, then reduced to £20,000 in 2028. They will have to file quarterly and do a year end tax return through the system.


Let the chaos begin!

Do you think the Accountancy profession is going to bear the brunt of this and see it crumble when the sub £20K income taxpayers come aboard. HMRC are scrambling at the moment to get as many taxpayers out of the Self Assessment regime before MTDSA Kicks in.
 

DontAsk

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Jan 7, 2015
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forcing them to ... buy software specifically for the purpose.

Sounds like a bit of scare mongering to me, since they may well be able to use their existing accounting software.

VT, for example, will support MTD for income tax. Yes, you will probably pay a bit more but VTs MTD for VAT was not onerous.

I would be surprised if the same is not also true of other players.
 
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JEREMY HAWKE

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    I dont think they will have enough staff to monitor that level of reporting transactions along with not being able to police the amount of soles traders that are unable to cope with this new demand
     
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