NEWS STORY : Countdown Begins – One Year Until Making Tax Digital for Income Tax Launches
STORY
With less than a year remaining, HM Revenue and Customs (HMRC) is urging eligible taxpayers to prepare for the upcoming changes. Starting 6 April 2026, sole traders and landlords in the UK with annual income exceeding £50,000 will be required to maintain digital records and submit quarterly updates to HMRC using Making Tax Digital (MTD)-compatible software. This initiative is a significant component of the government’s “Plan for Change,” aiming to modernise the tax system, enhance efficiency, and support economic growth. By adopting digital record-keeping, taxpayers can streamline their financial management, reduce errors, and save time previously spent on manual processes.
James Murray MP (in photo), Exchequer Secretary to the Treasury, emphasised the importance of this transition:
“MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth. By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.”
Craig Ogilvie, HMRC’s Director of Making Tax Digital, highlighted the significance of this change:
“MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.”
HMRC encourages eligible individuals to participate in the current testing programme to familiarise themselves with the new system and access dedicated support. This proactive approach is intended to ensure a smooth transition ahead of the mandatory implementation next year.
