HMRC has contacted workers directly to tell them they may need to take action as a new rule came into effect this week. The start of the new tax year on Monday April 15 2026 means that Making Tax Digital is now applicable to anyone who does their own tax return and had an income above £50,000 in the 2024/25 tax year.
It is part of a phased introduction of the new system which will require people such as landlords and the self-employed to store digital records and use compatible software that connects to HMRC systems to send quarterly income and expenses updates to the tax authority followed by a final declaration.
In an email to people registered for self-assessment it said that if you receive qualifying income from self-employment and property you will be legally required to use Making Tax Digital for Income Tax based on the level of qualifying income from the following dates.
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It then explained that more people will come into its scope from the start of the 2027 and 2028 tax years. From April 2027 it will apply to people who earned more than £30,000 in the 2025/26 tax year and from April 2028 the threshold will be those who earned more than £20,000 in the 2026/27 tax year subject to legislative approval.
HMRC said it was running webinars to help people and landlords and businesses prepare. If you receive income from property register for the webinar called Get ready for Making Tax Digital for landlords and joint property owners. For businesses register for the webinar called How to get ready for MTD if you are a business. The sessions will cover the requirements of MTD for Income Tax and practical steps you can take to prepare your business.
They will also cover the rules and who will be affected and when. The webinars include information about making informed software choices and authorising your agent if applicable and signing up to MTD & utilising any benefits and opportunities. If you are a sole trader or landlord without an accountant or bookkeeper register for this webinar for the latest information about MTD to help you get ready for when MTD for Income Tax becomes a legal requirement from April 2026.
The MTD for Income Tax system requires eligible taxpayers to keep digital records and submit quarterly updates through compatible software. The rollout happens in phases based on your income level. If your business or property income exceeds £50,000 annually you need to join from April 2026. Those earning between £30000 and £50000 must comply from April 2027. You should check your total qualifying income from self-employment and property to see if you fall within these thresholds. Some people are exempt from MTD including those who practice certain religions that prohibit using electronic communications and those who cannot use digital tools due to age or disability.
