HMRC issues 6-month alert to 780,000 tax payers – check if its you | Personal Finance | Finance
In just six months, self-employed workers and landlords with an income that exceeds £50,000 will have to adopt Making Tax Digital (MTD) for Income Tax. It means that as of April 6, 2026, people must maintain digital records on their income that are submitted to HM Revenue and Customs (HMRC).
In a new post on X, HMRC wrote: “There’s just 6 months to go until Making Tax Digital for Income Tax. From April 2026 there will be a new way to report income from self-employment and property to us. Check if you need to sign up for the next tax year.”
In what they are dubbing as the “biggest change since HMRC launched Self Assessment 30 years ago”, the tax body is encouraging those affected to prepare and take part in early testing. These earners are encouraged to get to grips with the digitalised tax tool so that they are confident in using it by the time it becomes mandatory. The website states that it is “rewiring the way you do income tax”. It claims that this aims to “spread the admin” throughout the year with split quarterly updates instead of filling out a tax return all at once.
The gov.uk website states that the following people will need to follow the new system if one or all of the following applies:
- Are an individual registered for self-assessment
- Get income from self-employment or property, or both
- Have a qualifying income of more than £20,000
HMRC has made it clear that this process will not mean people who currently do their own taxes will need to complete additional tax returns. The idea is that instead, you’ll be sharing your income and expenses on a quarterly basis instead of all at once.
It explained: “The required quarterly updates are simple summaries that your software generates automatically. Think of it as digital bookkeeping that talks to HMRC four times a year, rather than cramming everything into January for your self-assessment return.
“If you spot an error, you can fix it in the next update. More than 2,000 updates have been successfully submitted in the testing programme, and the feedback from those involved has been encouragingly positive.”
When it comes to the software itself that taxpayers are expected to use, it states that free versions and paid alternatives will exist. The tax authority said: “There isn’t a one-size-fits-all – the key is finding which software works for your business. The software will give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and avoiding nasty January surprises.”
It’s estimated that these changes will affect around 780,000 self-employed people and property owners who will be required to use MTD from April 2026.
An additional 970,000 are expected to join them as of April 2027. You can sign up to the early testing programme and get a head start via GOV.UK.
