In a major change to the reporting requirements, the threshold will be raised to £50,000 from the original plan to make the rules compulsory for any landlord or self-employed individual with income of more than £10,000.

This is the fifth delay to the rollout which was first planned for 2018. Now there has been a u-turn on the planned 2024 start date while a higher income threshold means initially 700,000 taxpayers will have to comply compared with up to four million under the original plan.

Those with an income of between £30,000 and £50,000 will need to report under MTD from April 2027 bringing a further 900,000 taxpayers into the reporting framework.

The move will be widely welcomed as there was a low level of awareness of the rule change and it netted millions of taxpayers, creating an admin headache with the requirement to report earnings quarterly as well as filing a year-end return.