Copyright birminghammail
Certain people are being urged to prepare now for major tax changes happening next spring. HMRC is stepping up its advertising campaigns in a bid to make Brits aware of the Making Tax Digital (MTD) changes from April 2026. It impacts self-employed individuals and landlords earning more than £50,000 a year, who are required to file self-assessments. READ MORE: Everyone on Universal Credit, Housing Benefit and ESA to wake up to £150 bonus payment Get our best money saving tips and hacks by signing up to our newsletter They will be required to provide online updates every three months instead of just once a year. Late filers may not face immediate fines under the new system, though eventual penalties could be larger for those who lose track of deadlines and fall behind. George Holmes, managing director of business finance specialists Aurora Capital, explained what the shake-up means for those affected. “HMRC is starting to weave Making Tax Digital (MTD) messaging into its self-assessment campaign, which tells you the countdown has well and truly begun. "The language has shifted from ‘future reform’ to ‘get ready now’, serving as a wake-up call for the nearly 900,000 sole traders and landlords set to enter the system in 2026. "Most of these taxpayers already file online, but MTD goes far beyond that. "It means new software, quarterly updates, and in many cases, hundreds of pounds in annual subscription and training costs. "HMRC’s own analysis shows transitional costs of around £280 per business and ongoing software expenses of about £160 million a year. "Filing early isn’t the only message small businesses need; preparing early is. "You need to be testing software, setting budgets, and understanding the new penalties now. "Doing this will be the difference between a smooth transition and a potentially expensive shock next spring.” HMRC said in an update on X: "Tax is changing. "From April 2026, you will need to send quarterly updates using HMRC recognised software if you have turnover above £50,000 from self-employment or property. Get ahead and sign up today." The Government website adds: "Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush."
