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Posted Sat, 16 Jul 2022 07:30:48 GMT by hipchicmck
I have a problem with the way MTD is designed. I have a subscription service for my music students. They pay me a monthly direct debit, and I teach their kid 30 times in the year. If it ends up more, they top me up. If it ends up less, they get a credit for the next year. It means that as a teacher who only works 30-34 weeks of the year I have that income spread over all 52 weeks. This is essential for me to manage my own expenditure etc - a summer break with no income is awful. This model has worked really well for the past decade, and I don't want to change it. But it seems like the MTD model is based on quarterly updates, and I only reconcile with my clients once a year. I have no intention of spending masses of time each quarter to do this. I don't earn enough to make it remotely worth my time, and my teaching model doesn't fit neatly into 4 quarters. I need to ask HMRC about this before I'm forced into adopting the MTD method in 2024. Ideally I'd like a year to try it first etc. Can anyone help me with this? I also can't find any free software for the self-employed, and as I earn about £6k a year after costs I don't have the funds for the costly software out there.
Posted Tue, 26 Jul 2022 11:33:27 GMT by HMRC Admin 19
Hi,

If you contact our Self Assessment helpline, we can transfer you through to our SA MTD team who can discuss this with you.

Self Assessment: general enquiries

All of our online information for SA MTD is here:

Making Tax Digital for Income Tax

Thank you.

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