HMRC has contacted customers directly to remind them about a new tax system, with the first deadline relating to Making Tax Digital (MTD) due this week. On Monday, some self-assessment users received an email outlining the new requirements.
The new system changes how self-assessment works for people who file their own taxes, such as the self-employed and landlords. Instead of a single end-of-year calculation, taxpayers will need to submit quarterly updates. The first of these quarterly submissions is due on Friday, August 7.
Who is affected by the August 7 deadline?
The email from HMRC explained that those with a turnover over £50,000 in the 2024/25 tax year should have been using MTD from April 6, 2026. This group is subject to this week's deadline.
The phased rollout means that taxpayers with a turnover of more than £30,000 in the 2025/26 tax year will need to use MTD from April 6, 2027. Those exceeding £20,000 in the 2026/27 tax year will be required to do so from April 6, 2028.
Webinars and support
HMRC is running webinars to help taxpayers get ready. For businesses, there's a session titled "How to get ready for Making Tax Digital for Income Tax if you are a business". For landlords and joint property owners, there is "Get ready for Making Tax Digital for Income Tax – landlords and joint property owners".
In a statement, HMRC said: "During them, we'll cover the requirements of Making Tax Digital 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 Making Tax Digital for Income Tax and utilising any benefits and opportunities. If you're a sole trader or landlord without an accountant or bookkeeper, register for this webinar for the latest information, to help you get ready for Making Tax Digital for Income Tax."
Legal requirement from April 2026
HMRC added: "From April 6, 2026, it is now a legal requirement for those with a turnover over £50,000. We'll look at planning – understanding the rules and work out if you're affected and when, how to prepare for Making Tax Digital for Income Tax, including what you need to do, the actions you will take and signing up for Making Tax Digital for Income Tax, using Making Tax Digital for Income Tax – following the rules and consider how you can utilise any benefits and opportunities."
Useful short videos are also available, including "How do I sign up for Making Tax Digital for Income Tax?" on HMRC's YouTube channel.
