Overview
- From April 6, individuals with 2024–25 rental or self-employment income above £50,000 must use compatible software to send four quarterly updates plus a year-end update and a final declaration to HMRC.
- HMRC says the quarterly summaries are not tax returns, and those affected must still file 2024–25 by 31 January 2026 and 2025–26 by 31 January 2027 under the existing self-assessment system.
- The first Making Tax Digital deadlines fall on 7 August and 7 November for quarterly updates, with two further quarterly submissions each tax year.
- HMRC has warned around 800,000 people risk being caught out, as tax professionals flag low awareness and raise concerns over the department’s technical readiness and potential use of real data in testing.
- Scope will widen as thresholds drop to £30,000 in April 2027 and £20,000 in April 2028, with at least three million expected to be in scope, and accountants urge early registration, separate business banking and suitable paid software for most cases.