{"id":113580,"date":"2025-10-07T12:00:00","date_gmt":"2025-10-07T11:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=113580"},"modified":"2025-10-07T11:21:23","modified_gmt":"2025-10-07T10:21:23","slug":"hmrcs-urgent-warning-to-the-self-employed","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrcs-urgent-warning-to-the-self-employed\/","title":{"rendered":"HMRC’s Urgent Warning to the Self-Employed: Are You at Risk?"},"content":{"rendered":"\n

Self-employed workers earning over \u00a350,000 will be required to join the government\u2019s new digital tax reporting system from April 2026. The change is part of the ongoing Making Tax Digital <\/strong>initiative, which aims to streamline the way income tax is reported and paid.<\/p>\n\n\n\n

HM Revenue and Customs (HMRC) has issued an urgent reminder to self-employed individuals and landlords with annual earnings above \u00a350,000<\/strong>. With just six months remaining, those affected must prepare to switch to the Making Tax Digital for Income Tax Self Assessment (MTD ITSA) system.<\/p>\n\n\n\n

First announced as part of the UK government\u2019s broader plan to modernise tax administration, MTD will alter how self-employment and property income is recorded and submitted. While currently voluntary for most, the new system will become mandatory for thousands starting in the 2026\u20132027 tax year<\/strong>.<\/p>\n\n\n\n

Who Must Comply With MTD for Income Tax From April 2026<\/strong><\/h2>\n\n\n\n

From 6 April 2026<\/strong>, individuals earning more than \u00a350,000<\/strong> per year from self-employment, property, or both combined will be legally required to follow Making Tax Digital for Income Tax<\/strong> procedures. The income threshold applies to the 2024\u20132025<\/strong> tax year, and HMRC will assess eligibility after reviewing Self Assessment tax returns submitted by 31 January 2026<\/strong>, according to official guidance.<\/p>\n\n\n\n

Those above the income threshold will be contacted by HMRC <\/a>to confirm whether they must join the scheme. Affected individuals or their tax agents must then register for the service and ensure they are using compatible software to maintain digital records<\/strong> and submit quarterly updates<\/strong> of income and expenses.<\/p>\n\n\n\n

This marks a shift from the traditional annual tax return system. Under MTD ITSA, taxpayers will provide four updates per year<\/strong>, followed by an end-of-period statement<\/strong> and a final declaration<\/strong>. According to HMRC, the aim is to reduce errors and provide a clearer view of tax liabilities throughout the year.<\/p>\n\n\n\n

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There\u2019s just 6 months to go until Making Tax Digital for Income Tax. \ud83d\udcc5

From April 2026 there will be a new way to report income from self-employment and property to us.

Check if you need to sign up for the next tax year. \ud83d\udd3dhttps:\/\/t.co\/T6Jyo2fDzx<\/a> pic.twitter.com\/vpzumkWzNX<\/a><\/p>— HM Revenue & Customs (@HMRCgovuk) October 6, 2025<\/a><\/blockquote>