HMRC data published today shows 864,000 self-employed workers and landlords will be forced into quarterly digital tax reporting when ‘Making Tax Digital for Income Tax’ goes live in April. The construction sector is the worst affected, with 251,000 businesses caught by the new rules. That is nearly a third of the total. One-man band plumbers, electricians, and bricklayers who are now required to file four times a year instead of one…
London accounts for the single biggest regional share at 167,000, boosted by 35,000 landlords-only, nearly three times the number in any other region. Across the country 118,000 people whose only qualifying income is from property will be pulled into the pointless regime for the first time.
The mandate applies to anyone with combined self-employment and property income above £50,000. Each will need compatible accounting software to submit quarterly updates to the tax man, so that’s yet another new recurring cost on top of the extra tedious admin. At least the accountants will be happy. And good luck getting on the phone to HMRC when this system inevitably hits the skids…
In Henry Mance’s piece today for the FT, lunching with Nigel Farage:
“Splendido!” Farage says, when the drinks arrive; I suppose it’s a step to European reconciliation. We clink glasses, and he lights the first of two back-to-back Benson & Hedges. A few minutes later, we’re back downstairs. “Are you drinking? Good.” He orders a glass of Sauvignon blanc for each of us — not a bottle, “because it’s Lent” — followed by a bottle of claret, to have with our meal. They say Farage drinks less than he used to. They say a lot of things.”