HMRC has confirmed it is sending letters to more than 200,000 people
HM Revenue and Customs ( HMRC ) is sending more than 200,000 letters to people who will be affected by changed to the tax system next year. There are merely five months remaining until sole traders and landlords with qualifying income exceeding £50,000 will be obliged to utilise Making Tax Digital (MTD) for Income Tax.
The rollout on April 6, 2026 represents a substantial and ultimately time-saving transformation in how these people will need to maintain digital records and submit their income to HMRC. Whilst five months may seem like an extended period, HMRC is encouraging customers to stay ahead of the curve now and participate in the testing programme, reports the Daily Record.
HMRC said: “It will give you the chance to get comfortable with the new system before it becomes mandatory and access to our dedicated support team – essentially a safety net while you learn the ropes.”
HMRC is eager to ensure people understand the modification will not result in anyone having to submit additional tax returns.
HMRC said: “The required quarterly updates are simple summaries that your software generates automatically. Think of it as digital bookkeeping that talks to HMRC four times a year, rather than cramming everything into January for your Self Assessment return.
“If you spot an error, you can fix it in the next update. More than 2,000 updates have been successfully submitted in the testing programme and the feedback from those involved has been encouragingly positive.”
HMRC has advised that customers will need compatible software for their new system, but reassured that there are both free and paid options available.
The tax authority said: “There isn’t a one size fits all – the key is finding which software works for your business. The software will give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and avoiding nasty January surprises.”
They added: “If you’re already using spreadsheets or accounting software, you can get compatible software that connects to your existing records and meets the new requirements.”
Craig Ogilvie, Making Tax Digital director, said: “Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now’s the time to start preparing. MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return.
“There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it.”
HMRC estimates that approximately 780,000 self-employed people and landlords will be required to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. You can sign up for the testing programme on GOV.UK.
