HMRC data published today shows 864,000 self-employed workers and landlords will be forced into quarterly digital tax reporting when ‘Making Tax Digital for Income Tax’ goes live in April. The construction sector is the worst affected, with 251,000 businesses caught by the new rules. That is nearly a third of the total. One-man band plumbers, electricians, and bricklayers who are now required to file four times a year instead of one…
London accounts for the single biggest regional share at 167,000, boosted by 35,000 landlords-only, nearly three times the number in any other region. Across the country 118,000 people whose only qualifying income is from property will be pulled into the pointless regime for the first time.
The mandate applies to anyone with combined self-employment and property income above £50,000. Each will need compatible accounting software to submit quarterly updates to the tax man, so that’s yet another new recurring cost on top of the extra tedious admin. At least the accountants will be happy. And good luck getting on the phone to HMRC when this system inevitably hits the skids…
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