“We remain concerned about extending MTD income tax to those with turnover over £20,000 from April 2028. Lowering the threshold will add about 1 million taxpayers, mostly sole traders but notably including landlords who may have only one rental property. This will follow shortly after the first mandatory annual tax returns are due for those with turnover over £50,000, allowing little time to assess the impact of MTD income tax before it is extended.
“MTD income tax represents the most significant change in decades for sole traders and landlords, requiring digital record-keeping and filing quarterly updates and year-end tax returns via commercial software that meets HMRC’s requirements. HMRC will not provide software, so taxpayers must carefully choose from available products, many of which vary significantly and may not meet their needs. More preparation is needed from both HMRC and software developers.
“While we support digitalisation of accounting records, we don’t agree with mandatory quarterly updates which add cost without benefit. Instead, we’d like to see the retention of annual reporting with optional quarterly updates instead. As requirements begin in less than a year, agents and taxpayers must prepare.”
ENDS
Notes to editors:
Contact ICAEW media office:
About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 208,000 members and students around the world.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects more than 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
Further information
latest press releases
Contact us
Media relations
Our Media Relations team can be contacted for comment, opinion and information on issues affecting the accountancy profession, business and the wider economy.
Find out moreAbout ICAEW
Who we are
As a global professional body for chartered accountants, we ensure all our chartered accountants have the knowledge and values to help build local and global economies that are sustainable, accountable and fair.
Find out more