The largest representative body for accountants has written to HMRC asking them to review the requirement for sole traders and landlords to report their earnings once a quarter, saying that the rules are burdensome and are not justifiable.

ICAEW has had meetings with HMRC to discuss the delayed rollout of MTD for Income Tax (MTD ITSA), and is calling for a rethink on how the new reporting requirements will work.

Quarterly reporting requirements also came in for criticism as they add to administrative costs and will not necessarily address HMRC’s aim to improve the quality of records.

‘Even when a taxpayer is maintaining digital records on a regular basis, having to ensure that these records are complete and checked by specific quarterly deadlines adds extra compliance burdens, especially where a bookkeeper or agent is involved as we expect in the majority of cases,’ ICAEW said.

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