HM Revenue and Customs (HMRC) has issued a warning to workers in the UK as a major tax change is set to come into play next year
UK workers have been given an urgent reminder as a significant tax change is set to take effect next year. HM Revenue and Customs (HMRC) has warned that “tax is changing” in April 2026.
This alteration will impact self-employed people and landlords earning more than £50,000 annually. They will be required to submit online updates every three months instead of compiling everything at tax return time.
In a post on social media platform X, HMRC reminded people about the upcoming change, stating: “Tax is changing. From April 2026, you will need to send quarterly updates using HMRC recognised software if you have turnover above £50,000 from self-employment or property. Get ahead and sign up today.”
The new system, known as Making Tax Digital (MTD) for Income Tax, will commence on 6th April. The Government website describes it as a “significant” and “ultimately time-saving” shift in how individuals must maintain digital records and report their income.
GOV.UK explains: “By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of the government’s Plan for Change.
“Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush.”
James Murray MP, exchequer secretary to the Treasury, said: “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.
“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”
Qualifying income encompasses gross earnings from self-employment and property before any tax allowances or expenses are deducted. Individuals with qualifying income exceeding £30,000 will also need to utilise MTD for Income Tax from April 2027.
The threshold will subsequently drop to £20,000 from April 2028. For further details, visit the Government website here.