MTD extended

Posted on 01 Mar 2024
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HMRC extends MTD to landlords and sole traders

As of 2027, HMRC will extend its Making Tax Digital (MTD) programme to landlords and sole traders with income over £30,000. All businesses and landlords earning over £50,000 will have to join MTD for Income Tax Self Assessment (ITSA) from April 2026. This threshold will then fall to £30,000 the following April. HMRC expects that around 780,000 people with business or property income over £50,000 will join MTD for ITSA from April 2026, with a further 970,000 joining from April 2027. 

From our experience of MTD for VAT, landlords and sole traders have a real shock in store when the realise the time and costs involved in getting ready for MTD and the ongoing costs of quarterly filings. Even HMRC have now admitted that the costs are massively more than their original estimates, but their latest cost estimates are absurdly low - they don't even cover a third of the typical subscription to a cloud accounting package.

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