FAQs.

If you receive joint income, such as income from a jointly owned property, each individual must report their share of the income separately for Making Tax Digital (MTD) for Income Tax purposes. MTD requires each taxpayer to maintain their own digital records and make their own submissions to HMRC, even if the income is derived from a jointly held source. 

For example, if you and another person own a rental property together, you should each keep digital records of your respective share of the income and expenses. When making quarterly updates and your final submission, you must report only your share, not the total joint income. This ensures that HMRC receives accurate information for each taxpayer’s liability. 

Yes, you can voluntarily sign up for MTD for Income Tax even if you do not meet the minimum income threshold. 

If you are no longer self-employed, a landlord or your income drops below the threshold, you may not need to comply with MTD for Income Tax.  

When your business ceases, you will need to notify HMRC that your business has ended after you have made your final quarterly submission. 

If your income falls below the threshold, you will only be able to remove yourself from MTD for Income Tax after your qualifying income has been below the threshold for three consecutive tax years.   

Yes, exemptions will apply for individuals who meet certain criteria.  E.g. those who are unable to use digital tools due to age, disability, or remote location. 

It will be necessary to apply to HMRC for exemption, it will not be given automatically.

Under MTD for Income Tax, you must submit summary updates of your income and expenses at least quarterly (every three months), rather than just once a year. 

The quarterly filing deadlines are as follows: 

MTD for Income Tax is being introduced in a phased approach depending on your level of qualifying income.

You will need to comply if your qualifying income (i.e. income before expenses) is greater than £20,000. 

Qualifying income is: 

• Income from self-employment
• Income from rental properties. 

Where you have income from both sources, you need to consider your combined qualifying income to see if you qualify. 

VAT errors can lead to penalties, interest, and HMRC scrutiny. If you have made a mistake, PEM’s experts can quickly assess the situation and help you take corrective action.

Yes. VAT on property transactions and construction projects can be highly complex. Our specialist team can provide tailored advice to help you plan ahead and avoid costly errors.

Charities and non-profits face a range of VAT challenges, including partial exemption and non-business apportionments. PEM’s VAT advisers have significant experience advising the third sector and can help maximise recovery and minimise risk.

Reclaiming VAT on overseas expenses or cross-border trade can be complex. Our specialists can advise on the correct treatment, eligibility for reclaims, and help ensure compliance with VAT rules.

Yes. Our VAT team has extensive experience supporting clients through VAT inspections, and disputes. Our advisers can represent you in dealings with HMRC and help resolve complex issues efficiently.