By Linda Howard,Rory Poulter

Copyright dailystar

Just over six months remain before self-employed people and landlords earning above £50,000 must comply with Making Tax Digital (MTD) for Income Tax . The rollout on April 6, 2026 represents a major shift in how these taxpayers must maintain digital records and submit their earnings to HM Revenue and Customs ( HMRC ). The UK Government claims that maintaining digital records year-round will spare sole traders and landlords countless hours previously wasted collecting paperwork during tax return season – freeing them to concentrate on business operations and boost economic growth as part of its Plan for Change. Over 8,000 people have backed a new online petition demanding the proposals be abandoned. Petition organiser Saira Khan contends that numerous small enterprises rely on paper-based tax documentation and may not possess the digital expertise required for online compliance, reports the Daily Record . The ‘stop HMRC implementing making tax digital and enforcing quarterly submissions’ petition, published on the UK Government’s Petitions Parliament website, declares: “HMRC is pushing ahead with Making Tax Digital: a scheme that requires all businesses to maintain digital accounts. “Currently many small businesses use paper accounting records or spreadsheets. Small businesses may lack the skills, time and funding to maintain digital accounts. It is taxing enough for many of us to submit a yearly tax return to HMRC. But now we think this new implementation of making tax digital, using new software and quarterly submissions is taking things just too far.” The petition concludes: “Please stop making tax digital which is due to be started in April 2026. We think paying tax is hard enough but this is going to just add insult to injury.” Once the petition garners 10,000 signatures, it will warrant a written response from the UK Government. If it reaches 100,000 signatures, the Petitions Committee will consider it for debate in parliament – you can view the full petition here . HMRC estimates that approximately 780,000 self-employed people and landlords will need to utilise MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. Quarterly updates aim to distribute the workload more evenly throughout the year, bring the tax system closer to real-time reporting, and assist businesses in managing their finances and avoiding last-minute rushes. HMRC is encouraging eligible customers to sign up for a testing programme on GOV.UK and begin preparations now. Agents can also register their clients via GOV.UK. Craig Ogilvie, HMRC’s Director of Making Tax Digital, stated: “Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now’s the time to start preparing. MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self Assessment return. “There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it. Don’t delay – go here to learn more and sign up to our testing programme today.” MTD for Income Tax represents the most substantial transformation to the Self Assessment system since it launched in 1997. The initiative will enable self-employed people and property owners to better manage their tax responsibilities whilst ensuring they pay the correct amount of tax. Starting from April 2026, people with qualifying earnings exceeding £50,000 must maintain digital records, utilise MTD-compatible software and file quarterly updates of their income and expenditure to HMRC. These digital obligations will assist businesses in saving time through more streamlined record-keeping, minimise mistakes in tax computations, and offer a clearer understanding of their tax liabilities year-round. Qualifying earnings encompass gross revenue from self-employment and property prior to any tax allowances or costs being subtracted. Individuals with qualifying earnings above £30,000 will also need to adopt MTD for Income Tax from April 2027. The limit will subsequently drop to £20,000 from April 2028. The gradual roll-out of MTD for Income Tax comes after the successful launch of MTD for VAT, which currently aids over two million businesses in minimising errors and saving time on their tax matters. Businesses that participated in the MTD for VAT testing phase were better equipped for the transition to quarterly reporting. An independent study released in 2021 discovered that 69 per cent of mandated businesses reaped at least one advantage from MTD for VAT, while 67 per cent reported that it lessened the likelihood of errors in their record keeping.