HMRC has issued a direct warning to taxpayers that they will be legally required to follow new digital tax rules starting from April 2026. The Making Tax Digital (MTD) for Income Tax initiative will initially apply to those earning more than £50,000 per year from self-employment or property income.
From April 2027, the threshold will drop to £30,000, and from April 2028 it will further lower to £20,000, subject to legislation. Taxpayers must use compatible software to keep digital records, send quarterly updates, and submit annual tax returns by January 31.
HMRC is offering free webinars to help businesses and landlords prepare for the changes. Separate sessions are available for sole traders, landlords, and those without an accountant.
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