HMRC has confirmed how it works out property income for the making tax digital (MTD) income tax self assessment (ITSA) threshold test. It is also stepping-up efforts to encourage taxpayers to join private beta testing. Income from joint propertyAn easement applies that allows income from joint property to be recorded as a ‘net’ figure in a ITSA return. This means that the person can report their share of the income from the property after expenses. HMRC has confirmed that where a taxpayer uses this easement in their tax return, that net income figure is used to determine whether the person is over the turnover threshold for MTD ITSA purposes.This approach follows automatically from the fact that HMRC will use specific boxes on the tax return to test for the turnover threshold. As explained in ICAEW's MTD guidance, these relevant boxes are:Self-employment turnoverSA103F box 15, SA103S box 9, SA200 box 3.6Self-employment other incomeSA103F box 16, SA103S box 10UK property incomeSA105 box...
