MTD Query Hub
This is a dedicated space to raise questions, share concerns, and gain practical insights on Making Tax Digital. You will get answers direct from HMRC and QXAS MTD experts within 7 working days.
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[Q] If a client has self-employment in 24/25 of approx £40k and rental of £20K but the property was sold in March 25 is he still mandated from April 2026?
Asked by: Webinar Attendee22/07/2025
The qualifying income will be based on the 24/25 income and taxpayers are required to use MTD for at least 3 years. Therefore, in this example, the taxpayer would use MTD from April 2026.
-Chris Jennings (HMRC Rep)[Q] Does the 50K income include employment & PAYE income?
Asked by: Webinar Attendee22/07/2025
This is the gross income from self employment and/or property only. Any other income is only included on the end of year tax return as now and doesn\'t form part of the qualifying income to determine when clients are mandated.
-Chris Jennings (HMRC Rep)[Q] Just to get it clear MTD is not applicable at all to corporates?
Asked by: Webinar Attendee22/07/2025
No answers submitted yet. Our expert will revert soon!
[Q] Has anyone got a set of workflows drafted for different types of clients to meet the shoebox through to digital savvy clients?
Asked by: Webinar Attendee22/07/2025
No answers submitted yet. Our expert will revert soon!
[Q] What is the reference point for deciding whether over the limit? Is it income in tax year 25/26? What if client sold property in 25/26 and income will be less than £50k in 26/27 but 25/26 is above £50k?
Asked by: Webinar Attendee22/07/2025
Once a client is in MTD they must remain for at least three years even if the income is below the minimum threshold unless the source of the business or property ceases.
-Chris Jennings (HMRC Rep)[Q] Is there a way to look at what is involved without signing up any clients? Most of my clients won\'t want to pay me extra just yet.
Asked by: Webinar Attendee22/07/2025
Gov.uk has a lot of information on MTD for Income Tax
-Nicholas Fihosy (HMRC Rep)[Q] Does the 4th submission have to equal the tax return? Just thinking if an invoice comes in late, as I\'ve had happen before, and the 4th submission has been filed - the tax return will be different?
Asked by: Webinar Attendee22/07/2025
We appreciate that you may not have all of the client information when the updates are due. If you don\'t have all the information by the time the update is due, you should submit the details you have and consider amending and re-submitting to ensure you have a true reflection of the taxpayer\'s income and expenditure before completing and submitting the tax return.
-Chris Jennings (HMRC Rep)[Q] If you are using one software for all income types, will we need to separate them out for each type for the returns?
Asked by: Webinar Attendee22/07/2025
No, you can use multiple MTD compatible software for the updates. They all go into one pot.
-Nicholas Fihosy (HMRC Rep)[Q] I have a client that I keep rental income in one software package, and their self employed income in another software - can I submit two separate summaries for each income stream, or does it all need to be under one software package?
Asked by: Webinar Attendee22/07/2025
The use of multiple MTD compliant software is acceptable
-Nicholas Fihosy (HMRC Rep)[Q] If self-employed individual is already in MTD - VAT will they still need to file quarterly submission for MTD ITSA and why when HMRC already have their data?
Asked by: Webinar Attendee22/07/2025
The two taxes are different and therefore will need to be filed separately.
-Nicholas Fihosy (HMRC Rep)