Is there a timeline for large professional partnerships to adopt MTD?
Is there a timeline for large professional partnerships to adopt MTD?
Currently, MTD for Income Tax is not applicable to partnerships. HMRC believes there are benefits to partnerships in adopting digital recordkeeping and the use of software. HMRC’s current priority is the successful delivery of MTD for income tax for sole traders and landowners. We want to ensure that any future timeline for the introduction of MTD for Income Tax to partnerships provides appropriate time and support for customers to make the transition.
What if my client starts a new source of income during the tax year?
What if my client starts a new source of income during the tax year?
To add a new source of income for quarterly submissions, you can add this to your client’s HMRC online services account within the “manage your client’s income tax” details section. Once the details are added, you need to re-import from HMRC in our MTD tax software to reflect the most up-to-date information available with HMRC.
What if my client ceases a source of income during the tax year?
What if my client ceases a source of income during the tax year?
As an agent you can update this information on behalf of your client in the HMRC online services account by reporting the date the business or property income source stopped.
Do I have to submit quarterly updates with no values once the source of business income ceases?
Do I have to submit quarterly updates with no values once the source of business income ceases?
After you’ve notified HMRC that a source of income has been ceased, there is no requirement to send quarterly updates for the quarters after the cessation date.
Can some of my clients be exempt from MTD for income tax?
Can some of my clients be exempt from MTD for income tax?
It might be impractical for your clients to maintain digital records or submit data to HMRC digitally due to age, disability, religion, location — like poor internet connection — or other valid reasons. If that’s the case, they can directly request an exemption from Making Tax Digital for Income Tax from HMRC.
Do I have to amend my client’s previous quarterly submission if a transaction was missing or an error was made?
Do I have to amend my client’s previous quarterly submission if a transaction was missing or an error was made?
From the 2025/26 tax year onwards, HMRC will introduce the Cumulative Quarterly Update Process. This process means you do not need to amend previous quarterly submissions if a transaction was missed or an error was made. Instead, you can correct the error in the next quarterly submission and import cumulative quarterly data directly into our MTD solution. No changes are required for earlier quarterly submissions.
How do we amend the final declaration once submitted?
How do we amend the final declaration once submitted?
Once the final declaration is submitted to HMRC for MTD, agents can amend it within the amendment window by contacting HMRC’s dedicated customer support team. Currently, amendments to final declarations cannot be made directly through MTD software as HMRC has not yet provided the necessary APIs for this function.
How do I check all the history of submissions made for my client?
How do I check all the history of submissions made for my client?
The Thomson Reuters MTD software provides a convenient way to track all submissions made for your client. The Submission History tab offers a complete record of all submissions to HMRC, including details such as the submission date, the submitter, and the status — whether successful or failed. In case of a failed submission, the reason for the failure is clearly displayed, allowing for quick identification and resolution of any issues.
Can I import the quarterly information submitted by my client directly to HMRC via Thomson Reuters MTD software?
Can I import the quarterly information submitted by my client directly to HMRC via Thomson Reuters MTD software?
The Thomson Reuters MTD solution will include an Import from HMRC feature starting with the 2026 to 2027 tax year. This feature allows you to directly import the most recent information submitted to HMRC for a specific cumulative quarter into your MTD tax solution.
Can the quarterly calendar election be changed to the standard election during the later quarters?
Can the quarterly calendar election be changed to the standard election during the later quarters?
Calendar election can be opted for during the first quarterly submission during the tax year. Once opted, it cannot be changed in the subsequent quarters.