UK taxpayers say Making Tax Digital exemption threshold is ‘too low’

The vast majority of UK taxpayers are complaining that a £10,000 annual income threshold, which would see small business and taxpayers exempt from Making Tax Digital (MTD) and its associated reporting requirements, is ‘too low’.

The news comes following a recent HM Revenue & Customs (HMRC) webinar into the implications of MTD, which asked taxpayers to confirm their ‘top worries’ about the much-criticised tax overhaul.

12 per cent of those quizzed told HMRC that they thought the MTD exemption threshold should be ‘at least double’ the proposed £10,000.

A much greater 78 per cent added that they thought even a £20,000 threshold was ‘too low’.

Furthermore, 61 per cent added that they felt familiarising themselves with HMRC’s new systems and MTD policies would be ‘too time consuming’.

HMRC’s webinar also revealed the sad news that the Revenue would not be issuing any free software or apps for conversion to MTD.

An HMRC spokesperson said: “All [MTD] products will be provided by commercial software providers, including free to use products.

“We will not be publishing a list of authorised suppliers, but we will be publishing a list of software applications, and a brief description of what the product does, as well as the business type (or size of agent if applicable) the product is aimed at”.

Further MTD webinars examining the implications of Making Tax Digital will run up until the end of September 2016.