Overview

• HMRC has started sending mandatory letters to self-employed workers and landlords with over £50,000 in combined income, notifying them to register for Making Tax Digital for Income Tax Self Assessment
• From April 6, 2026, affected taxpayers must keep digital records and use HMRC-compatible software to file four quarterly income and expense summaries and a final annual declaration
• Failure to meet quarterly filing deadlines will incur a £100 fine immediately, daily £10 penalties after three months up to £900 total, and further six- and twelve-month surcharges
• HMRC is inviting eligible individuals to join a voluntary pilot programme as a FreeAgent survey found that 39% of accounting professionals had never heard of Making Tax Digital
• Income thresholds will drop to £30,000 in April 2027 and to £20,000 in April 2028, extending the digital reporting requirement to nearly two million taxpayers