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Deferral of MTD

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The HMRC notice of the budget announcement to delay MTD for 12 months for business below the VAT threshold is somewhat restrictive:

"April 2018 if they have profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs) and their turnovers are in excess of the VAT threshold

April 2019 if they have profits chargeable to Income Tax and pay Class 4 NICs and their turnovers are below the VAT threshold"

For all intents and purposes, landords, who do not pay Class 4 NI, will fail to meet the exemption condition, as will those who pay no Class 4 because they are age exempted.

 

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By Marion Hayes
08th Mar 2017 14:12

But maybe by April 2018 they will be paying it?
Quick skim of document says quarterly reports will replace VAT returns so no chance to use estimates as some posters suggested in the past

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By darrenwilliams
08th Mar 2017 14:17

Could anyone confirm when a director/shareholder(PSC setup say) with a low PAYE earnings and high dividends(say £35000) will have to start using MTD, would this now be April 2019 ?(the document does not actually say the date secondary income would become under MTD)

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By Mitch
08th Mar 2017 14:32

The Spring Budget Policy Paper says "Digital administration – The government will provide an extra year, until April 2019, before Making Tax Digital is mandated for unincorporated businesses and landlords with turnover below the VAT threshold."

No mention of being liable to Income Tax or Class 4 NIC!

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Replying to Mitch:
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By Mister E
08th Mar 2017 16:08

Mitch wrote:

The Spring Budget Policy Paper says "Digital administration – The government will provide an extra year, until April 2019, before Making Tax Digital is mandated for unincorporated businesses and landlords with turnover below the VAT threshold."

No mention of being liable to Income Tax or Class 4 NIC!

I think the original statement and reference to C4 NIC is just badly worded.

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