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AAT disputes level for businesses and landlords.
Few professionals support HMRC’s proposed Making Tax Digital (MTD) exemption for unincorporated businesses or landlords with a gross income of under £10,000. A survey of Association of Accounting Technicians (AAT) members deemed the threshold insufficient with less than 5% considering it to be sensible.
The AAT suggests that the threshold should be set at £83,000 (the current VAT threshold), falling to £11,000 (the personal allowance) over a three-year period.
Adam Harper, director of strategy and professional standards at the AAT, said: ‘Linking the exemption limit to the VAT threshold allows many of the smallest companies additional time to get to grips with the challenges MTD presents while ensuring larger ones remain within scope.’
The proposal also recognises that most VAT-registered businesses already submit quarterly VAT returns so are used to frequent reporting for some of their financial affairs.
