HMRC is offering various free support resources to assist with preparation
Sole traders and landlords earning more than £50,000 from self-employment and property are being urged to take action immediately. There are only a few weeks remaining to prepare for Making Tax Digital (MTD) for Income Tax.
From April 6 2026, eligible people will be required to use approved software to maintain digital records and submit quarterly updates of their income and expenses to HM Revenue and Customs (HMRC). It’s crucial to understand these are not additional tax returns.
HMRC is offering a variety of free support to assist people in preparing, including online guidance, webinars and videos. Those who genuinely cannot utilise digital tools may apply for an exemption, with further details and guidance available on GOV.UK.
Free software options exist and once income and expenses are logged, the software produces a straightforward summary to submit to HMRC. At the conclusion of a tax year, those within MTD for Income Tax will still be required to submit a tax return by the following January 31 – however, the software will already contain the information from the quarterly updates, eliminating any last-minute search for records or receipts, reports the Daily Record.
Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully. This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.
“Spreading your tax admin throughout the year means avoiding that last minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.”
Thousands of self-employed individuals and landlords have already registered for MTD for Income Tax, with over 12,000 quarterly updates successfully filed through a voluntary pilot scheme. Those entering MTD in April 2026 will still submit their tax return for the 2025 to 2026 tax year in the standard manner by 31 January 2027, as this period falls before MTD commences.
The initial MTD tax return, spanning the 2026 to 2027 tax year, will be required by 31 January 2028. To ease the changeover, the government has confirmed customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates during the first 12 months.
Under the revised system, penalty points will be issued for each late submission, with a £200 fine only imposed once four points accumulate. This means occasional lapses won’t trigger instant penalties.
HMRC is encouraging those affected by MTD for Income Tax to take action now: review the guidance, select software and register on GOV.UK. Those who work with a tax agent should discuss preparation with them.
