UK Digital Tax Regime to Cost More for Lower-Income Businesses

Lower-income UK businesses will face a higher transitional cost than their higher-earning peers as they seek to comply with new mandatory quarterly digital tax updates, official estimates released Tuesday showed.

Sole traders and landlords with annual income between £20,000 ($26,734) and £30,000 are expected to spend £101 million on additional annual tax compliance once they are brought into the Making Tax Digital regime in April 2028, according to His Majesty’s Revenue and Customs’ policy paper.

Those businesses will also face a transitional cost of £380 million to meet MTD requirements, which include digital record-keeping and quarterly submission of ...