HMRC writes to workers as change ‘legally required’ with new rule this week | Personal Finance | Finance
HMRC has contacted workers individually to inform them they may need to take action as a new regulation took effect this week. The commencement of the new tax year on Monday, April 6, 2026, means that Making Tax Digital now applies to anyone completing their own tax return who had an income exceeding £50,000 during the 2024/25 tax year.
It forms part of a staged rollout of the new framework, which will require individuals such as landlords and the self-employed to maintain digital records and utilise compatible software that links to HMRC systems for submitting quarterly income and expenditure updates to the tax authority, followed by a final declaration.
In an email to people registered for self-assessment, it said: “If you receive qualifying income from self-employment and/or property, you’ll be legally required to use Making Tax Digital (MTD) for Income Tax – based on the level of qualifying income – from the following dates.”
It then explained that additional people will fall within its remit from the beginning of the 2027 and 2028 tax years. From April 2027 it will encompass people who earned more than £30,000 in the 2025/26 tax year and from April 2028 the threshold will be those who earned above £20,000 in the 2026/27 tax year, subject to legislative approval.
Emailing individuals registered for self-assessment, HMRC said it was running webinars to help people, landlords and businesses prepare.
It said: “If you receive income from property, register for our webinar – ‘Get ready for Making Tax Digital – landlords and joint property owners’. For businesses, register for our webinar – ‘How to get ready for MTD if you are a business'”
It stated the sessions would address the requirements of MTD for Income Tax, practical measures you can implement to prepare your business, the regulations, who will be impacted and when, making informed software selections, authorising your agent, if relevant, and registering for MTD while utilising any advantages and opportunities.
It continued: “If you’re a sole trader or landlord without an accountant or bookkeeper, register for this webinar for the latest information about MTD, to help you get ready for when MTD for Income Tax becomes a legal requirement from April 2026.”
Those sessions will address planning for MTD for Income Tax – understanding the regulations and determining if you are impacted and when, how to prepare for MTD for Income Tax, including what you need to do, the steps you will take and registering for MTD for Income Tax and using MTD for Income Tax – adhering to the regulations and considering how you can exploit any advantages and opportunities.
