Income tax changes in April 2026 for Brits to look out for | Personal Finance | Finance
Self-employed people and landlords generating over £50,000 from their business activities and property portfolios are being advised to take immediate action.
There are merely six weeks remaining to prepare for Making Tax Digital (MTD) for Income Tax. Beginning April 6 2026, eligible taxpayers will be required to utilise approved software for maintaining digital records and submitting quarterly updates of their earnings and expenditure to HM Revenue and Customs (HMRC). It’s crucial to understand these quarterly submissions are not additional tax returns.
HMRC is offering an extensive array of complimentary support to assist with preparations, including digital guidance, webinars and instructional videos. Individuals who genuinely cannot utilise digital tools may request an exemption, with further details and guidance accessible on GOV.UK.
Complimentary software solutions are accessible and once earnings and expenditure are logged, the software produces a straightforward summary for submission to HMRC.
At a tax year’s conclusion, those subject to MTD for Income Tax will still be obligated to submit a tax return by the subsequent January 31 – however, the software will already contain the data from quarterly updates, eliminating any last-minute scramble for documentation or receipts, reports the Daily Record.
Craig Ogilvie, HMRC‘s Director of Making Tax Digital, said: “With two months to go until MTD for Income Tax launches, now is the time to act. 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 registered for MTD for Income Tax, with over 12,000 quarterly submissions successfully filed through a voluntary pilot scheme.
Those entering MTD in April 2026 will continue to submit their tax return for the 2025 to 2026 tax year in the standard manner by January 31 2027, as this encompasses the period prior to MTD commencing. The initial MTD tax return, spanning the 2026 to 2027 tax year, will be required by January 31 2028.
To facilitate the changeover, the Government has confirmed that customers entering MTD for Income Tax in April 2026 will not incur penalty points for delayed quarterly submissions during the initial 12 months.
Within the new framework, penalty points will be allocated for each overdue submission, with a £200 fine only imposed once four points accumulate. This ensures occasional oversights won’t trigger instant penalties.
HMRC is encouraging those affected by MTD for Income Tax to take action immediately: review the guidance, select software and register on GOV.UK. Those who employ a tax agent should discuss preparations with them.
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