By Linda Howard,Rory Poulter

Copyright walesonline

Self-employed people and landlords earning more than £50,000 have just over six months remaining before they must comply with Making Tax Digital (MTD) for Income Tax requirements. The implementation date of April 6, 2026 represents a substantial shift in how these taxpayers will need to maintain digital records and submit their earnings information to HM Revenue and Customs (HMRC). According to the UK Government, maintaining digital records throughout the year will enable sole traders and landlords to save considerable time previously spent collating information during tax return periods – freeing them up to concentrate on their business operations and subsequently boosting 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 completion, reports the Daily Record . The ‘stop HMRC implementing making tax digital and enforcing quarterly submissions’ petition has been published on the UK Government’s Petitions Parliament website and says: “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 ends: “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, it could be considered by the Petitions Committee for debate in parliament – you can view the full petition here . HMRC estimates that approximately 780,000 self-employed people and landlords will be required to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. Quarterly updates are designed 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 start preparing now. Agents can also register their clients via GOV.UK. Craig Ogilvie, HMRC’s Director of Making Tax Digital, said: “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.” Making Tax Digital for Income Tax represents the most substantial transformation to the Self Assessment system since it was launched in 1997. The changes will enable self-employed people and property owners to better manage their tax responsibilities whilst ensuring accurate tax payments. Starting from April 2026, those earning qualifying income exceeding £50,000 must maintain electronic records, utilise MTD-compatible software and provide quarterly updates of their earnings and expenditure to HMRC. The digital framework is designed to help enterprises streamline operations through improved record management, minimise calculation mistakes, and offer greater transparency regarding tax liabilities year-round. Qualifying income encompasses total earnings from self-employment and rental properties prior to deducting tax allowances or business costs. People with qualifying income surpassing £30,000 will be obligated to adopt MTD for Income Tax from April 2027. The income threshold will subsequently drop to £20,000 from April 2028. The gradual roll-out of Making Tax Digital (MTD) for Income Tax follows 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 pilot scheme were better equipped for the transition to quarterly reporting. A 2021 independent report revealed that 69 per cent of mandated businesses saw at least one advantage from MTD for VAT, while 67 per cent stated it lessened the likelihood of errors in their record keeping.