Tax is changing in April 2026
This is a guest article from HMT.
As Making Tax Digital (MTD) for Income Tax launches in April 2026, HMRC has provided key updates and resources to support your engagement with affected communities.
What's changing
From 6 April 2026, sole traders and landlords with turnover more than £50,000 must use MTD for Income Tax. This new way of doing tax returns requires compatible software to:
· create, store and correct digital records of their income and expenses
· send quarterly updates to HMRC
· submit their tax return by 31 January the following year
When MTD for Income Tax starts
MTD for Income tax will be rolled out in stages, starting in April 2026 for landlords and sole traders with turnover more than £50,000. The threshold will reduce to turnover above £30,000 in April 2027 and above £20,000 in April 2028. HMRC won't automatically sign customers up, making proactive engagement essential.
How HMRC are helping individuals prepare
HMRC has launched a comprehensive communications campaign to raise awareness of MTD for Income Tax, centred around a dedicated MTD campaign page that explains the key preparation steps. Supporting this central resource, regular live webinars cover essential preparation guidance, while recorded sessions and explanatory videos help stakeholders understand the legal requirements.
To address the practical challenge of software selection, HMRC has developed a comprehensive software finder tool that helps individuals identify compatible products to meet their specific needs. For those wanting hands-on experience before the mandatory implementation, a voluntary testing programme for 2025-26 allows participants to build confidence with the new processes while accessing dedicated support from HMRC's specialist MTD Customer Support Team.
Supporting your communities
Early preparation will be crucial as customers adjust to this new digital process. All stakeholders are encouraged to familiarise themselves with this information and cascade to your networks. To help you, HMRC have developed a dedicated an MTD campaign resources hub where you can find out more about the campaign, as well as ready to use assets you can copy across to your own channels.
