HMRC has been contacting taxpayers to alert them to a new regulation that came into effect in April and is set to impact a growing number of people over the coming years. In a recent email, the tax authority reminded recipients about Making Tax Digital (MTD). This represents a fresh approach to self-assessment for those who are self-employed or receive income from property.
Rather than submitting a single tax return at the close of each tax year, individuals will be required to adopt a new system involving quarterly reports alongside an end-of-year submission. MTD-compatible software must be utilised to comply with the new requirements.
Gradual Introduction of MTD
In an email issued this week, HMRC confirmed that MTD would be introduced on a gradual basis. For those whose turnover exceeded £50,000 in the 2024/25 tax year, using MTD is not yet mandatory. From April 2027, those who turned over more than £30,000 in the 2025/26 tax year will be required to begin using the system. Finally, those who earned more than £20,000 in 2026/27 will need to use it from April 2028.
Webinars to Assist Taxpayers
HMRC has announced it is hosting webinars on MTD to assist landlords, joint property owners and businesses in getting prepared. Businesses can register for the webinar titled 'How to get ready for MTD if you are a business'. Those who receive income from property can register for the webinar 'Get ready for Making Tax Digital – landlords and joint property owners'.
The sessions will cover the requirements of MTD for Income Tax, practical steps you can take to prepare your business, the rules, who will be affected and when, making informed software choices, authorising your agent, if applicable, and signing up to MTD and utilising any benefits and opportunities.
Guidance for Sole Traders
HMRC said: "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, which is now a legal requirement from April 6, 2026, for those with a turnover over £50,000."
The webinar will examine planning for MTD for Income Tax, getting to grips with the regulations and determining whether you are affected and when, how to gear up for MTD for Income Tax, including the necessary steps and actions required, as well as registering for MTD for Income Tax and putting it into practice — adhering to the rules while exploring how to make the most of any advantages and opportunities on offer.
A selection of short videos is also available on HMRC's YouTube channel, including one entitled 'How do I sign up for Making Tax Digital for Income Tax'.
