Questions 5–8 in FOI-2025/162436 explore the number of taxpayers who may be affected by cessation in relation to MTD ITSA.
A summary analysis of those numbers is provided here.
For the 2023/24 tax year, how many taxpayers submitted returns included: a SA103; a SA105, both SA103 and SA105? If practicable, please distinguish between SA103S and SA103F?
There were 4.51m taxpayers who submitted an SA103 for tax year 2023 to 2024, of which 3.52m submitted an SA103S and 988,000 an SA103F.
There were 454,000 taxpayers who submitted both an SA103 and an SA105 for tax year 2023 to 2024, of which 296,000 submitted an SA103S and SA105, and 158,000 submitted an SA103F and SA105.
HMRC omitted to state how many SA105 returns were submitted. A Google search indicates that there were 2.86 million SA105 returns for the tax year 2023/4.
For the 2023/24 tax year, how many returns included an SA106? No breakdown by other schedules is required?
There were 649,000 taxpayers who submitted an SA106 for tax year 2023 to 2024.
For the 2023/24 tax year, how many returns contained a cessation notification in the SA103S, SA103F, SA105 or SA106? Separate figures are preferred where possible? Please advise whether the figures include or exclude cessation due to death. I would prefer figures that exclude or separate out death but wish to keep your work to a minimum.
The 2023/4 tax year was requested as this information was known to be avaiaibleThere were 215,000 taxpayers who completed either box 6 in an SA103S or box 7 in an SA103F in tax year 2023 to 2024 indicating that at least one of their businesses had ceased after 5 April 2023 but before 6 April 2024. While 159,000 taxpayers completed box 6 on an SA103S and 56,000 completed box 7 on an SA103.F The meaning of this sentence in unclear
There were 86,000 taxpayers who ticked box 2 in an SA105 in tax year 2023-24 indicating that all property income ceased in tax year 2023-24 and they did not expect to receive such income in tax year 2024-25.
There is no cessation notification on the SA106.
These figures are for completion of the cessation notification in the SA103S, SA103F and SA105 including those notifications due to death.
Has HMRC estimated the number of businesses that, on a going-concern basis, would meet the Tranche 1 £50K threshold but are expected to note a cessation of business in the 2024/5 tax year? If so, what are the estimated numbers?
There were 22,000 businesses with MTD qualifying income over £50,000 in tax year 2023-24 that completed a cessation notification in at least one of their SA103S, SA103F or SA105 returns for tax year 2023-24.
Of these 22,000, approximately 200 are likely to be due to death, based on a UK mortality rate of 899 per 100,000
The man analysis is discussed here.
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