Value Added Tax Regulations 1995 32B states:
"(1) The requirements imposed by regulation 32A do not apply to a person—
(c)for whom the Commissioners are satisfied that it is not reasonably practicable to make a return using a compatible software return system for reasons of disability, age, remoteness of location or any other reason”
Disability, age and remoteness of location is reasonably clear, but what about “any other reason”? It’s there in law so it can be used, but what does it over in practice?
HMRC's stance has been that if the client has a digital device, they should be able to comply with MTD. But we all know there is a huge gulf between a client being able to post on Facebook, and being able to (accurately and completely) maintain their digital accounting records. If the client is young, lives in a well-connected location but is incapable of learning, is that enough to meet the “any other reason” criteria above? I know they could claim on grounds of disability if they’d been diagnosed with a learning condition, but I’m talking about your average self-employed worker.
What about a client that is working every available hour? If they don’t have the time, would that meet the “any other reason” criteria?