With just over 18 months to go until rollout, one in five UK sole traders have still not heard of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), despite the government announcing it seven years ago
Although there has been extensive publicity about Making Tax Digital for VAT, a worrying 20% of sole traders are unaware of the upcoming changes to MTD for income tax, which will see quarterly reporting requirements become mandatory from April 2024.
Based on existing plans, it will affect any sole trader earning over £10,000 gross income each year from self employment or property, meaning the majority of buy-to-let landlords will be caught by the rules.
The majority of these sole traders do not use an accountant so there are concerns that levels of compliance could be low. The survey found that only 14% currently use an accountant or bookkeeper for their self assessment tax returns, while 7% use one for all their financial administration.
