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Self-Employed? HMRC's New Tax Digital Rule Starts April 2026

HMRC contacts taxpayers 'legally required' to follow new rule from April 2026

If you're self-employed or earn rental income, HMRC has a message for you: from April 2026, you'll legally need to use new digital tax filing software. Here's what you need to know and when it affects you.

**Who needs to act and when**

The new rule, called Making Tax Digital (MTD) for Income Tax, is being rolled out in stages based on how much you earn:

- **April 2026**: Anyone earning over £50,000 from self-employment or property must switch

- **April 2027**: The threshold drops to £30,000

- **April 2028**: It applies to anyone earning above £20,000 (pending government approval)

If any of this applies to you, HMRC will contact you directly by email with the details.

**What you'll actually need to do**

Instead of the old paper-based system, you'll use special software to:

- Keep digital records of your income and expenses

- Send quarterly updates to HMRC automatically

- Submit your annual tax return by 31 January as usual

The good news? You don't have to do this alone. If you use an accountant or bookkeeper, they can handle it for you. And if you're going it alone, HMRC is offering free webinars to help you understand the requirements, choose software, and get prepared.

**How to prepare now**

Don't wait until April 2026 to start thinking about this. HMRC has three separate webinars available:

- One for general self-employed businesses

- One specifically for landlords and joint property owners

- One for sole traders and landlords without an accountant

You can register for any of these via HMRC's website to get a head start and understand exactly what's needed.

**Next steps**

If you're self-employed or a landlord, mark April 2026 (or 2027/2028 depending on your income) in your calendar. Start thinking about which software you'll use, and attend a free webinar to get clued up. The earlier you prepare, the smoother the transition will be when your deadline arrives.

Source: HMRC contacts taxpayers 'legally required' to follow new rule from April 2026

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