This affects some people earning over a certain amount
Self-employed Brits and landlords earning above £50,000 from self-employment and property are being advised to take action immediately.
There are six weeks remaining for Brits to prepare for Making Tax Digital (MTD) for Income Tax. From April 6 2026, eligible taxpayers will be required to use approved software to maintain digital records and submit quarterly updates of their income and expenditure to HM Revenue and Customs ( HMRC ). It’s crucial to note these are not counted as additional tax returns.
HMRC is offering various forms of free assistance to help people get ready, including online guidance, webinars and video tutorials. Those genuinely unable to use digital tools may apply for an exemption, with further details and guidance accessible on GOV.UK.
Free software alternatives are available and once income and expenditure are logged, the software produces a straightforward summary to submit to HMRC.
At the conclusion of a tax year, those covered by MTD for Income Tax will still be required to submit a tax return by the following January 31 – but the software will already contain the information from the quarterly updates, eliminating any last-minute scramble for records or receipts, reports the Daily Record.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.
“This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax. Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.”
Thousands of sole traders and landlords have already registered for MTD for Income Tax, with over 12,000 quarterly updates successfully filed through a voluntary testing scheme.
Those joining MTD in April 2026 will still submit their tax return for the 2025 to 2026 tax year in the standard manner by January 31 2027, as this covers the period before MTD commences. The first MTD tax return, covering the 2026 to 2027 tax year, will be due by January 31 2028.
To assist with the transition, the Government has confirmed that customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates during the first 12 months.
Under the new framework, penalty points will be issued for each late submission, with a £200 penalty only applied once four points are accumulated. This means occasional mistakes won’t result in immediate fines.
HMRC is encouraging those within scope of MTD for Income Tax to act now: read the guidance, choose software and sign up on GOV.UK. Those who use a tax agent should speak to them about preparing.
