{"id":27017,"date":"2025-08-07T09:57:29","date_gmt":"2025-08-07T09:57:29","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=27017"},"modified":"2025-08-07T09:57:31","modified_gmt":"2025-08-07T09:57:31","slug":"is-incorporation-your-ticket-to-skipping-mtd-for-it","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/is-incorporation-your-ticket-to-skipping-mtd-for-it\/","title":{"rendered":"Is incorporation your ticket to skipping MTD for IT?"},"content":{"rendered":"\n

By Matt Storey, Partner<\/em><\/p>\n\n\n\n

If you are a sole trader, you may have shrugged off the Government\u2019s decision to shelve Making Tax Digital (MTD) for Corporation Tax (CT).<\/p>\n\n\n\n

It likely would not have impacted you anyway, and the looming threat of MTD for Income Tax (IT) is more of a concern.<\/p>\n\n\n\n

However, the removal of MTD for CT could provide profitable sole traders who earn between \u00a350,000 and \u00a390,000 a year with a valuable option for avoiding MTD hassle entirely.<\/p>\n\n\n\n

We take a look at whether now is the time to incorporate your business.<\/p>\n\n\n\n

How can incorporation help you dodge MTD?<\/strong><\/h3>\n\n\n\n

If you\u2019re happy running your books in a spreadsheet, the thought of upgrading to specialist software can feel like an unnecessary headache.<\/p>\n\n\n\n

This has caused some reluctance for many sole traders to make the swap to MTD for IT, even as the deadline gets closer.<\/p>\n\n\n\n

However, incorporation could cut out the hassle, as your finances will look very different once incorporated.<\/p>\n\n\n\n

Profits in a limited company are calculated under a different set of rules compared to those of a sole trader.<\/p>\n\n\n\n

Once you incorporate, you no longer need to worry about the MTD for IT thresholds.<\/p>\n\n\n\n

This may come as a relief to those who earn above \u00a350,000 a year and thus would be staring down the MTD for IT deadline of April 2026.<\/p>\n\n\n\n

You might be aware of the need to handle MTD for VAT, and this could cause some hesitancy around incorporating.<\/p>\n\n\n\n

However, the VAT threshold is currently \u00a390,000 a year, so if you earn below that, then you do not need to worry.<\/p>\n\n\n\n

This provides a vital opportunity for sole traders who earn within that \u00a350,000 to \u00a390,000 range to take a bold step towards keeping their businesses growing while also cutting back on the administrative hassle of MTD.<\/p>\n\n\n\n

What other perks come with incorporation?<\/strong><\/h3>\n\n\n\n

As a sole trader, your personal assets are closely intertwined with your business.<\/p>\n\n\n\n

Incorporation makes your business a separate legal entity from you, which can shield you from any financial or legal ramifications of business decisions.<\/p>\n\n\n\n

This can safeguard your home and personal assets in the event that things go wrong.<\/p>\n\n\n\n

To help keep things on the right track, incorporating also opens up new doors for investment and finances.<\/p>\n\n\n\n

Incorporation signals to investors a level of professionalism and stability that they overlook with sole traders.<\/p>\n\n\n\n

This opens new avenues of growth capital that sole traders simply cannot access.<\/p>\n\n\n\n

If your business is growing, it could be time to think about spreading the workload.<\/p>\n\n\n\n

You have come so far on your own, but it could be time to get a team behind you.<\/p>\n\n\n\n

Incorporating provides the structure to safely onboard employees so that you can get additional help and support to grow your thriving business.<\/p>\n\n\n\n

When embracing growth, it is important to keep a clear head.<\/p>\n\n\n\n

Pace yourself with investment and expansion, otherwise your business growth may end up short-lived.<\/p>\n\n\n\n

Before you incorporate or make any major financial decision, it pays to seek professional guidance.<\/p>\n\n\n\n

We are on hand to help you accelerate your business\u2019s growth without having to deal with the burden of MTD.<\/p>\n\n\n\n

Don\u2019t get unnecessarily trapped by MTD for IT obligations. <\/strong>Speak to our team today<\/strong><\/a> to unlock your business\u2019s financial future!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By Matt Storey, Partner If you are a sole trader, you may have shrugged off the Government\u2019s decision to shelve … Is incorporation your ticket to skipping MTD for IT?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,4,35,129,36],"tags":[],"class_list":["post-27017","post","type-post","status-publish","format-standard","hentry","category-blog","category-business","category-making-tax-digital","category-matt-storey","category-mtd"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/27017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=27017"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/27017\/revisions"}],"predecessor-version":[{"id":27019,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/27017\/revisions\/27019"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=27017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=27017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=27017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}