HMRC urges sole traders and landlords to prepare for digital tax regime

HM Revenue & Customs (HMRC) successful the UK has called connected sole traders and landlords earning much than £50,000 ($68,426) a twelvemonth to hole for Making Tax Digital (MTD) for Income Tax, which starts connected 6 April 2026.

The authorization estimates that much than 860,000 sole traders and landlords volition request to statesman integer taxation reporting.

After MTD becomes effective, those wrong scope indispensable support integer records and taxable quarterly “light-touch” updates of income and expenses utilizing recognised software.

HMRC said escaped bundle options are available, with tools that tin make a basal summary for submission erstwhile information is entered.

Taxpayers successful MTD for Income Tax volition inactive request to record a taxation instrumentality by the pursuing 31 January, but HMRC noted that the bundle volition already clasp accusation from the quarterly updates, reducing the request to hunt for documents astatine twelvemonth end.

HMRC MTD manager Craig Ogilvie said: “With 2 months to spell until MTD for Income Tax launches, present is the clip to act.

“A scope of bundle is disposable and the strategy is straightforward and helps trim errors. Thousands of volunteers person already utilized it successfully.

“This volition marque it easier for sole traders and landlords to enactment connected apical of their taxation affairs and assistance guarantee everyone pays the close magnitude of tax.”

HMRC added that thousands of sole traders and landlords person already joined MTD for Income Tax, with much than 12,000 quarterly updates submitted done a voluntary investigating programme.

Those entering the authorities successful April 2026 volition inactive record their 2025–26 taxation instrumentality successful the existent format by 31 January 2027, arsenic it includes a play earlier MTD begins.

The archetypal instrumentality nether MTD, covering the 2026–27 taxation year, volition beryllium owed by 31 January 2028.

To easiness the transition, the authorities has confirmed that customers joining MTD for Income Tax successful April 2026 volition not person punishment points for precocious quarterly updates during the archetypal 12 months.

"HMRC urges sole traders and landlords to hole for integer taxation regime" was primitively created and published by The Accountant, a GlobalData owned brand.

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