How will MTD affect me?

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At the moment the MTD proposals only affect sole traders and partnerships. There’ll be a separate consultation process for limited companies and their directors which will be announced in early 2018.

Your business will send summary data to HMRC each quarter. The data has to be sent from online accounting software such as Freeagent or Xero. The data will summarise your total sales and total expenses. These expenses will then be further broken down and itemised into things like salary costs, rent, and rates etc.

HMRC have confirmed that they won’t provide free online software to enable businesses to comply with MTD.