In February 2024, HMRC estimated that extending MTD to Income Tax Self Assessment from 2026–27 would impose transitional costs of around £561 million on sole traders and landlords with incomes above £30,000, and the continuing annual costs of MTD to these taxpayers would exceed the continuing annual benefits by around £196 million.60 In the Autumn Budget 2024 the government announced that MTD will be extended to sole traders and landlords with qualifying incomes over £20,000 “by the end of th...

In February 2024, HMRC estimated that extending MTD to Income Tax Self Assessment from 2026–27 would impose transitional costs of around £561 million on sole traders and landlords with incomes above £30,000, and the continuing annual costs of MTD to these taxpayers would exceed the continuing annual benefits by around £196 million.60 In the Autumn Budget 2024 the government announced that MTD will be extended to sole traders and landlords with qualifying incomes over £20,000 “by the end of this Parliament”.61 In written evidence provided after our evidence session HMRC further explained that its current plans for MTD for Income Tax will requi Type: conclusion | Number: 30 | Response status: accepted Government response: 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 HMRC conducts regular research with customers to understand their needs and perspectives. HMRC’s Government Social Researchers conduct qualitative and quantitative research,