MTDfIT - what is included

MTDfIT - what do we need to report

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Please can someone advise on what is needed. This seems to be all about replacing the annual tax return with an annual return (tax return) plus 4 more to make us one of the simplest tax adminsitation in the world (honest it is as someone said so!). So what is covered (unless you can be exluded).

 - self employed with income over £10k

- landlords with income over £10k

- Is it also anyone with income (ex PAYE) over £10k reported on a tax return?  So Ltd company clients may well be included?

thanks

Replies (3)

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By SteveHa
13th Aug 2021 12:11

self-employed and landlords with total income from those sources of more than £10K (so, e.g. £6,001 S/E and £5,000 rental would do it) , unless they are in a partnership which includes a corporate partner, as I understand it at the moment.

I've seen nothing to suggest that people will be dragged into the system where they are not currently required to be (e.g. employees).

Of course, this is just conjecture at the moment based on what we've been told. The reality is no-one knows, and it could mutate several times before it's actually here.

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Replying to SteveHa:
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By Hugo Fair
13th Aug 2021 14:23

+1 ... and
Q: "So Ltd company clients may well be included?"
A: MTD for CT is currently expected 'about a couple of years later than MTD for IT'.
But, as Steve says, no-one really knows what will be in place when each phase bites!

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By johnhemming
13th Aug 2021 14:46

The main thing about ITSA from HMRC's point of view is that it brings in quarterly reporting for Self Employments and Property income. Other income is reported annually and AFAIK there is no urgency in getting people to switch to it. Obviously over time everyone will use it.

Things like reconciling CIS will occur generally because if someone is in CIS then they will already be in for reporting Self Employment income.

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