HMRC issues new six-month tax warning to people earning £30,000 and over
HM Revenue and Customs (HMRC) has issued a six-month warning to thousands of sole traders and landlords ahead of a major change to how they report their tax. From April 6, 2027, sole traders and landlords with more than £30,000 in qualifying income from self-employment and property will have to start using Making Tax Digital (MTD) for Income Tax.
TL;DR
- Sole traders and landlords with income above £30,000 must use Making Tax Digital (MTD) for Income Tax from April 6, 2027.
- This requires keeping digital records and sending updates to HMRC every three months using compatible software.
- Annual tax returns and payment deadlines will not change, but reporting will be done through software.
- The threshold will lower to £20,000 from April 6, 2028.
- A points-based penalty system will be introduced for missed quarterly submission deadlines.
- HMRC urges affected individuals to prepare by checking applicability and choosing software.
- Free, paid, and bridging software options are available.