02 Feb 2026
The introduction of Making Tax Digital (MTD) for Income Tax this April will be the biggest change to the UK's tax system since self assessment, says the Low Incomes Tax Reform Group (LITRG).
From 6th April 2026, taxpayers with more than £50,000 of gross income from self-employment and/or rental income in the 2024/25 tax year will need to comply with the new rules from that date.
Unless they are exempt, taxpayers who meet the income threshold will be required to follow these new rules, which will include keeping digital records, submitting quarterly updates of their income and expenses, and filing an annual tax return using commercial software.
According to HMRC's data, more than 200,000 unrepresented taxpayers will be required to follow the new rules.
The LITRG has published new guidance to help taxpayers navigate the change.
Victoria Todd, Head of the LITRG, said: 'MTD is the biggest tax change since self assessment and with just over two months to go, time is running out to get ready.
'Many taxpayers will have the support of a tax adviser or accountant to guide them through the process. But for those who can't afford professional tax advice, the new rules may seem confusing and the requirements daunting.
'We want to make it as easy as possible for taxpayers to understand whether the rules apply to them and what they need to do if that is the case.'