A: Yes. MTD applies to trading and rental income. If the threshold was exceeded in the most recently submitted tax return and there is a continuing source of either of these types of income, even if now below the threshold, then MTD will continue to apply until your client’s income from these sources has fallen below the threshold for 3 consecutive years.
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
About Markel Tax
Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.