Specific Scenarios in Making Tax Digital

After tackling MTD challenges in Challenges and Considerations in MTD, it's wise to consider unique situations. If your business doesn't fit the standard mould, navigating Making Tax Digital requires careful attention to avoid pitfalls.

Non VAT Businesses

Non-VAT businesses, such as small sole traders below the £90,000 threshold, aren't required for MTD for VAT but must comply with MTD for ITSA if income exceeds £50,000 from April 2026. They need digital records and quarterly submissions. Voluntary for lower incomes; benefits include better oversight.

STAT: Around 1.5 million non-VAT entities expected in ITSA by 2027.

For deadlines, see Making Tax Digital for Income Tax (ITSA).

CIS (Construction Industry Scheme)

Under CIS, subcontractors must digitise records for MTD for ITSA from 2026 if qualifying income over thresholds. Software handles deductions, payments, and quarterly updates. Contractors verify digitally. Challenges include integrating CIS returns with MTD.

More on self-employed in Specific Audiences for MTD.

Joint Properties

For joint properties, landlords share income proportionally for MTD thresholds; each reports their portion quarterly from 2026 if over £50,000. Easements allow gross reporting with allocations. Software simplifies splits.

Details for landlords in Making Tax Digital for Income Tax (ITSA).

Niche Businesses

Niche businesses, like farms or charities with trading arms, follow MTD for ITSA if income qualifies, but exemptions apply for non-trading charities or trusts. Farms treat as self-employed; overseas elements need careful digital tracking. Consult HMRC for bespoke cases.

Explore software in Compliant Software for MTD.

Making Tax Do-able with PJL Accounts

PJL Accounts excels in handling MTD for unique setups, from CIS to joint lets. Clients note: "PJL clarified our niche compliance perfectly." We're equipped to tailor solutions.

Guided Preparation Steps

✅ Step 1: Check if You’re Registered

  • New VAT registrations are auto-enrolled into MTD.

  • If you registered before April 2022 and haven’t switched, you need to act now.

✅ Step 2: Register for MTD for VAT (if needed)

  • Use your Government Gateway login

  • Sign up here: Sign Up with HMRC

  • Register at least 7 days before your next VAT Return is due

  • Wait for HMRC confirmation (usually within 72 hours)

✅ Step 3: Using an Agent?

  • We can register and manage MTD for you

  • You stay hands-off—we do the admin and handle compliance

If challenges arise, reach out to us for tailored assistance. We advise a review for custom fit.

Remember we are here to enhance your work life balance. We have three ways to get you ready for ‘Making Tax Digital’.

Frequently Asked

  • Yes for ITSA if income over £50,000 from 2026; voluntary below.

  • Digital quarterly reporting; integrate with CIS deductions.

  • Proportional shares count; easements for reporting.

  • Digital records required; seek advice to avoid issues in Challenges and Considerations in MTD.

Reducing the stress of your Making Tax Digital journey

Mastering MTD in specific scenarios ensures tailored compliance and efficiency. Neglecting them invites errors and costs. Contact PJL Accounts for expert handling today.