HM Revenue and Customs (HMRC) has issued a final warning as its major tax system overhaul comes into force today, April 6. The introduction of Making Tax Digital (MTD) for Income Tax marks the biggest change to tax filing since the Self Assessment system started over 30 years ago.
From today, individuals with combined turnover from self-employment and property exceeding £50,000 must comply with MTD requirements. HMRC has urged taxpayers not to delay, stating: “Don’t leave it to the last minute – sign up now and get set up with recognised software.”
Under these new rules, taxpayers will no longer submit a single annual tax return. Instead, they must keep digital records and submit quarterly updates to HMRC through approved digital tools such as accounting software, apps, or bridging software connected to spreadsheets. A final declaration confirming taxable income will still need to be filed by January 31 each year.
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These initial rules apply to those with turnover over £50,000 starting today but will expand significantly in the coming years. From April 2026, the threshold will lower to £30,000, with plans to include earners above £20,000 in the future, though no timeline has been confirmed yet.
HMRC emphasizes that the new digital approach aims to reduce errors and help taxpayers manage their affairs in real time. However, some critics voice concerns over potential increased complexity and costs for small businesses and landlords who are less familiar with digital processes.
This latest warning highlights ongoing apprehension that many taxpayers may still be unprepared as the rules come into effect. HMRC strongly encourages anyone who might be affected to verify their turnover, select appropriate digital software, and register immediately to avoid any disruption starting this tax year.