Overview

• The scheme requires self-employed people and landlords with qualifying income to keep digital records and send quarterly updates using compatible software.
• Rollout begins on 6 April 2026 for those with qualifying income over £50,000 and extends in April 2027 to those over £30,000.
• Affected taxpayers will make five submissions each year: four quarterly updates and a final year-end declaration.
• HMRC will determine first-wave inclusion from 2024–25 tax return figures based on income rather than profit, then write to confirm after the return is filed.
• Accountants warn of penalties for missed or incorrect submissions and urge early filing and bookkeeping preparation, while HMRC says digitalisation aims to cut errors and a Self Assessment tax gap it estimates at about 18.5% (£5bn).