HMRC is reaching out to workers across the UK to alert them to a new legal requirement now in force. The tax authority is contacting people about the new rules, which launched in April and will impact increasing numbers over the coming years.
What Is Making Tax Digital?
In an email, HMRC highlighted Making Tax Digital (MTD), a fresh approach to self-assessment for those who are self-employed or receive property income. Rather than completing one tax return at the conclusion of each tax year, individuals will need to use a new platform to submit quarterly reports alongside an end-of-year submission. MTD-compatible software must be employed to adhere to the new requirements.
Phased Rollout of MTD
HMRC clarified that MTD is being rolled out progressively. For those whose turnover exceeded £50,000 in the 2024/25 tax year, it is not required to use MTD yet. 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 above £20,000 in 2026/27 will need to adopt it from April 2028.
Webinars and Support
HMRC revealed it is hosting webinars about MTD to assist landlords, joint property owners, and businesses in preparing. Businesses can sign up for the webinar '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 address the requirements of MTD for Income Tax, practical measures to prepare your business, regulations, who will be impacted and when, making informed software decisions, authorising your agent, and registering for MTD while taking advantage of benefits and opportunities.
Advice for Sole Traders
HMRC stated: "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, understanding the regulations, determining if you're affected and when, how to prepare, steps to take, registering for MTD, and adhering to rules while capitalising on benefits and opportunities. Short videos are also available, including 'How do I sign up for Making Tax Digital for Income Tax', on HMRC's YouTube channel.
