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MTD ITSA Deregistration

Can a client deregister for MTD ITSA if their overall income falls below £10,000 after 21-22?

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Hi,

Whilst the rules for mandatory registration for MTD ITSA are fairly clear, are there are rules for circumstances were a client's income subsequntly falls below £10,000?

On a simple level, say a client has two rental properties with income of £11,000 in 20-21, sold one proerty and had rental income of £5500 in 21-22 would they be able to deregister for 2024-25?

Many thanks

 

Replies (6)

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By SXGuy
14th Sep 2021 11:53

No idea but if its anything like Mtd for vat the answer would be no. Once you're in you're in. Unless I'm wrong.

Thanks (1)
RLI
By lionofludesch
14th Sep 2021 12:09

I vote no.

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By ireallyshouldknowthisbut
14th Sep 2021 13:05

I think its intended as permanent, I imagine the current SA system will be removed in time and we are left with MadTax and simple SA's.

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By Hugo Fair
14th Sep 2021 15:04

It's a good question on which there has been no formal announcement ... although I've heard HMRC bods say the same as others here (i.e. once you're in there's no way out - one even called it the Hotel California method)!

On the other hand, you can de-register from SA and from PAYE (and no doubt others) when your circumstances change ... so watch this space when reality hits!

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rebecca cave
By Rebecca Cave
15th Sep 2021 11:15

Until we see the final MTD ITSA regulations we have no idea.

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paddle steamer
By DJKL
15th Sep 2021 11:38

Sounds like ""We are programmed to receive"

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