{"id":125837,"date":"2026-09-23T07:00:00","date_gmt":"2026-09-23T06:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=125837"},"modified":"2026-09-23T01:58:48","modified_gmt":"2026-09-23T00:58:48","slug":"the-hmrc-income-deadline-change","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/the-hmrc-income-deadline-change\/","title":{"rendered":"The HMRC Income Deadline Change Many Self-Employed People Need to Know About"},"content":{"rendered":"\n

The latest update from the Treasury follows a parliamentary question from Luke Charters<\/strong>, Labour MP for York Outer, about how HMRC plans to manage the next phases of implementation. <\/p>\n\n\n\n

James Murray<\/strong>, Financial Secretary to the Treasury and Paymaster General, said the phased approach allows HMRC to build on experience before bringing more taxpayers into the system. The changes apply to people with income from self-employment, property, or both, when their qualifying income is above the relevant threshold for the tax year.<\/p>\n\n\n\n

HMRC Sets Out the Next Stages of the Digital Tax Rollout<\/strong><\/h2>\n\n\n\n

According to HMRC, taxpayers with qualifying income above \u00a330,000 for the 2025 to 2026 tax year will need to use Making Tax Digital<\/strong> for Income Tax from 6 April 2027. Those with qualifying income above \u00a320,000 for the 2026 to 2027 tax year will join from 6 April 2028.<\/p>\n\n\n\n

The first group entered the system from 6 April 2026, with the threshold set at more than \u00a350,000<\/strong> of qualifying income for the 2024 to 2025 tax year. The qualifying income test combines relevant income sources, meaning an individual with both self-employment income and property income may need to consider the total amount.<\/p>\n\n\n\n

For example, HMRC guidance states that a person receiving income from both activities must combine those amounts when checking whether they are above the threshold. A sole trader or landlord within scope must keep digital records <\/strong>and submit updates using compatible software.<\/p>\n\n\n\n

According to the Treasury, HMRC <\/a>is supporting the transition through communication campaigns aimed at taxpayers without professional representation, alongside engagement with agents, representative organisations and software developers.<\/p>\n\n\n\n

The changes do not alter the existing timetable for paying tax. Taxpayers will still need to complete a final tax return<\/strong> after the end of the tax year to confirm income, claim reliefs and make adjustments.<\/p>\n\n\n\n

\"\"
HMRC income update: New \u00a330,000 and \u00a320,000 thresholds bring digital tax reporting changes \u00a9Canva<\/em><\/figcaption><\/figure>\n\n\n\n

New Reporting Requirements Will Affect More Taxpayers Over Time<\/strong><\/h2>\n\n\n\n

The introduction of Making Tax Digital means some taxpayers who previously prepared their records once a year will need to manage their information more regularly. Quarterly updates will become part of the reporting process, while a year-end submission will remain required.<\/p>\n\n\n\n

According to HMRC, partnerships will also need to use Making Tax Digital<\/a> for Income Tax in the future, although a timetable for this has not yet been announced.<\/p>\n\n\n\n

The system includes a points-based penalty approach for missed filing obligations <\/strong>from 2027\/28 onwards. Taxpayers will receive penalty points for missed quarterly updates or tax return deadlines, with financial penalties applying after certain points totals are reached.<\/p>\n\n\n\n

HMRC has also recognised that digital reporting may not be practical for everyone. Some taxpayers can apply for an exemption where maintaining digital records or submitting information electronically would be unreasonable. Automatic exemptions<\/strong> apply to certain groups, including trustees, partnerships and personal representatives of deceased individuals.<\/p>\n\n\n\n

The Treasury says the gradual introduction is designed to allow taxpayers and HMRC to prepare for each stage. As the thresholds move from \u00a350,000 to \u00a330,000 and then \u00a320,000, more self-employed individuals and landlords will become part of the digital reporting system.<\/p>\n","protected":false},"excerpt":{"rendered":"

Making Tax Digital (MTD) for Income Tax is being rolled out in stages, changing how some sole traders and landlords record and report their income. The system replaces the traditional approach of completing one annual Self Assessment return with digital record keeping and regular updates during the tax year.<\/p>\n","protected":false},"author":10,"featured_media":125839,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-125837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=125837"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125837\/revisions"}],"predecessor-version":[{"id":125841,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125837\/revisions\/125841"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/125839"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=125837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=125837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=125837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}