Brits earning over £50,000 issued 4-month tax change warning
Landlords and sole traders with an annual income over £50,000 have less than four months before new income tax rules begin. HM Revenue and Customs' Making Tax Digital scheme is due to go live on April 6, 2026.
It is HMRC's plan to digitise the tax system for income tax self-assessment for businesses and individuals.
HMRC says the new digital system will make it easier to manage a business, and data safety measures such as two-factor authentication and encryption will mean information is stored securely.
The software should also allow business people to share details with accountants and clients.
April will mark MTD's latest phase. The scheme started in April 2019 when most VAT-registered businesses with a taxable turnover over £85,000 started keeping digital tax records.
In April 2022, MTD for VAT was extended to all VAT-registered businesses. This included those below the VAT threshold.
Further changes are scheduled in April 2027, when the system will be rolled out to sole traders and landlords earning over £30,000.
Exchequer Secretary to the Treasury, James Murray, said in April that MTD for income tax formed an essential part of Government plans to transform the tax system into one which supports economic growth.
He said: "By modernising how people manage their tax, we're helping businesses work more efficiently and productively while ensuring everyone pays their fair share.