HM Income & Customs has urged sole merchants and landlords incomes greater than £50,000 from self-employment and property to behave now with two months left to organize for Making Tax Digital (MTD) for Earnings Tax.
From 6 April 2026, these eligible want to make use of software program to maintain digital information and ship HMRC quarterly updates of revenue and bills. HMRC described the updates as “light-touch” and “not additional tax returns”.
Round 840,000 folks must do it.
Free and paid for software program choices can be found. As soon as revenue and bills are recorded, the software program generates a abstract to ship to HMRC.
On the finish of a tax 12 months, these inside MTD for Earnings Tax will nonetheless must file a tax return by the next 31 January.
Craig Ogilvie, HMRC’s director of Making Tax Digital, stated:
“With two months to go till MTD for Earnings Tax launches, now’s the time to behave. A variety of software program is accessible and the system is simple and helps scale back errors.
“It will make it simpler for sole merchants and landlords to remain on high of their tax affairs and assist guarantee everybody pays the correct quantity of tax.
“Spreading your tax admin all year long means avoiding that final minute scramble to finish a tax return each January. Go to GOV.UK and begin getting ready at this time.”
HMRC stated round 20,000 quarterly updates have been submitted by means of a voluntary testing programme.
These becoming a member of MTD this April nonetheless file their tax return for the 2025 to 2026 tax 12 months within the ordinary manner by 31 January 2027, because it covers the interval earlier than MTD begins. The primary MTD tax return, overlaying the 2026 to 2027 tax 12 months, is due by 31 January 2028.
Penalty factors for late quarterly updates won’t be imposed for the primary 12 months.
After that, penalty factors can be given for every late submission, with a £200 effective utilized as soon as 4 factors are reached.
MTD for Earnings Tax will apply to these incomes over £30,000 from self-employment from 6 April 2027 and to these incomes over £20,000 from 6 April 2028.
