Who does MTD apply to?

Key facts:

MTD will eventually apply to most individuals who are sole traders and those with total sales (not profit) from their trade and any property of more than £50,000 per annum from 2026, £30,000 from 2027 and £20,000 from 2028.

Right now, MTD applies to all VAT registered businesses.

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Who does MTD for VAT apply to?

MTD for VAT now applies to all VAT-registered businesses.

There are some exceptions to the requirement to submit VAT returns although they will apply to very few businesses. The exemptions are as follows:

• Religious objections

• No internet connection available

• Disability

• Age

• The business is insolvent

Additional useful information

• MTD for Income Tax Self Assessment - What it means for your business
• Making Tax Digital and the role of your accountant
• What are the penalties for non-compliance with MTD?
• What is MTD for VAT?
• MTD FAQs
• Trade and Construction Blogs
• 3 ideas for the government to help the trade industry help the nation