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HMRC Mails 200,000 Notices as Making Tax Digital for Income Tax Nears April 2026 Rollout

HMRC urges in-scope sole traders and landlords to get compatible software, join testing, prepare for quarterly digital updates.

Overview

  • The letters target taxpayers identified as over the £50,000 qualifying income threshold for the first phase starting 6 April 2026.
  • Further phases bring those over £30,000 into scope from April 2027, with coverage noting a planned lowering toward around £20,000 from April 2028.
  • HMRC says quarterly submissions are simple software-generated summaries, with both free and paid compatible tools available and more than 2,000 trial updates already processed.
  • Authorities stress the updates do not create extra tax returns, with payment dates such as 31 January unchanged and an annual return still used to reconcile other income.
  • Penalty details reported in the media vary, with some outlets highlighting a points-based regime leading to £200 fines for late or incorrect submissions and others citing expert warnings of potential £3,000 penalties for failing to keep digital records.