HMRC is offering various free support resources to assist with preparation
HMRC is offering various free support resources to assist with preparation(Image: Olga Pankova via Getty Images)
Nearly one million Brits are being urged to take action now ahead of a major change. There are only weeks to go before all people earning over a set amount will have to follow new rules.
From April 6 2026, eligible people earning over £50,000 from self-employment and property will be required to use approved software to maintain digital records and submit quarterly updates of their income and expenses to HM Revenue and Customs (HMRC). However it’s crucial to note changes, under the Making Tax Digital (MTD) switch, are not additional tax returns.
HMRC is offering various free support resources to assist with preparation, including online guidance, webinars and videos. Those genuinely unable to use digital tools can apply for an exemption, with further details and guidance available on GOV.UK.
Free software options exist and once income and expenses are logged, the software produces a straightforward summary to submit to HMRC. At the conclusion of a tax year, those within MTD for Income Tax will still be required to file a tax return by the following January 31 – but the software will already contain the information from the quarterly updates, eliminating any last-minute scramble for records or receipts, reports the Daily Record.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully. This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.
“Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.”
Thousands of sole traders and landlords have already enrolled for MTD for Income Tax, with over 12,000 quarterly updates successfully submitted through a voluntary testing programme.
Those joining MTD in April 2026 will still submit their tax return for the 2025 to 2026 tax year in the usual manner by 31 January 2027, as this covers the period before MTD commences. The first MTD tax return, covering the 2026 to 2027 tax year, will be due by 31 January 2028.
To aid the transition, the government announced customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates, for the first 12 months. Under the new system, penalty points will be given for each late submission, with a £200 penalty only applied once four points are accumulated. This means occasional mistakes won’t result in immediate fines.
HMRC is encouraging those within the scope of MTD for Income Tax to take action now: read the guidance, select software and sign up on GOV.UK. Those who use a tax agent should consult them about preparation.
