HMRC has opened up a service for landlords and self-employed to apply for
exemption from Making Tax Digital (MTD) for Income Tax phase one.
From next April, people who are self-employed and landlords, and declare more
than £50,000 of gross income in their 2024/25 self assessment tax return, will
be legally required to follow the new MTD for Income Tax rules from April 2026
onwards.
Anyone who thinks they may be eligible for exemption must phone or write to HMRC.
Third parties such as relatives and agents can do this on behalf of taxpayers if
they are authorised. It will take up to 28 days for HMRC to respond with a
decision.
Sharron West, Technical Officer at the Low Incomes Tax Reform Group (LITRG),
said:
'Because HMRC will deal with applications on a case-by-case basis, we don't
yet know how generous their interpretation of the rules will be, but we know
that HMRC are keen to see as many people as possible manage their taxes
online.
'If you are already exempt from MTD for VAT, HMRC say you should contact them
when the exemption application process opens so they can check your
circumstances and confirm if you'll also be exempt from MTD for Income
Tax.
'The clock is ticking and it's time to get ready.'
Internet link: GOV.UK Chartered Institute of Taxation