Introduction
HM Revenue and Customs (HMRC) has begun directly contacting self-employed individuals and landlords to inform them of new legal requirements under the Making Tax Digital (MTD) initiative.
From 6 April 2026, anyone completing a self-assessment tax return with qualifying income above £50,000 for the 2024/25 tax year must comply with digital record-keeping and regular electronic submissions.
This move marks the rollout of the latest phase of MTD, aiming to modernise the UK tax system by increasing accuracy and efficiency. Further phased changes will affect more taxpayers in subsequent years as HMRC extends the scheme.
Overview of Making Tax Digital Changes
The Making Tax Digital programme is part of HMRC's long-term plan to fully digitalise the UK tax reporting process. The latest update requires affected taxpayers to maintain digital records and use compatible software that integrates with HMRC systems.
Quarterly updates of income and expenditure, as well as a final end-of-year declaration, are now mandatory for those meeting the income threshold.
According to HMRC, these changes are intended to reduce errors and streamline submissions, allowing for a more transparent tax process. The initiative has been underway for several years, beginning with VAT-registered businesses.
Who Is Affected by the New Rules
From April 2026, individuals who are self-employed or receive property income above £50,000 for the 2024/25 tax year are required to comply with MTD for Income Tax Self Assessment (ITSA).
Affected groups include landlords, sole traders, and others required to file self-assessment tax returns within this income category.
The legal obligation to use digital tools does not apply to those under the threshold, but HMRC will extend the requirements in stages, bringing more taxpayers under the scope in coming years.
Timeline for Wider Implementation
The digital tax requirement will be introduced in phases. From April 2027, the threshold drops to £30,000 for individuals with qualifying income in the 2025/26 tax year.
By April 2028, subject to legislative approval, self-employed people and landlords earning above £20,000 in the 2026/27 tax year will also need to adhere to MTD for Income Tax rules.
These escalating thresholds are designed to provide taxpayers and software providers adequate time to prepare and adjust to the new digital processes.
Support and Guidance from HMRC
HMRC is offering a series of free webinars aimed at helping individuals, property owners, and businesses understand and prepare for MTD obligations.
These sessions provide detailed guidance on record-keeping requirements, software selection, action plans for compliance, and the process for signing up to MTD.
HMRC has also published video resources online to further assist taxpayers with the practical aspects of transitioning to the new system. Those without an accountant or bookkeeper are especially encouraged to participate in HMRC-hosted events for up-to-date guidance.
Practical Steps for Taxpayers
Individuals who fall within the new digital tax thresholds are required to select and use HMRC-compatible software to maintain digital records and submit quarterly updates.
HMRC recommends early engagement to ensure the correct systems are in place before the requirements become mandatory.
Taxpayers are also advised to assess whether they will be affected by upcoming changes, consider attending webinars, and seek help where necessary to ensure compliance well in advance of the deadlines.
Final Summary
The start of the new tax year in April 2026 introduces mandatory digital tax obligations for those earning over £50,000 through self-employment or property income.
This requirement will be extended to those with lower qualifying incomes over the following two years, dependent on parliamentary approval. HMRC is providing guidance and resources to ease the transition, emphasising early preparation and compliance. Taxpayers should remain attentive to communications from HMRC and consider available support to meet their new obligations efficiently.
Future changes and support resources can be monitored conveniently through dedicated financial tools such as the Pie app, which helps individuals keep pace with evolving tax requirements.
