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HMRC warning to workers as major tax change set for 2026 | Personal Finance | Finance

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Last updated: October 25, 2025 9:29 am
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Published: October 25, 2025
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Workers in the UK have been issued an urgent reminder as a major tax change comes into play next year. HM Revenue and Customs (HMRC) warned that “tax is changing” in April 2026.

The modification effects self-employed people and landlords if they make more than £50,000 a year.

It means they will have to submit online updates every three months rather than doing it all during tax return time.

In a post made to social media platform X, HMRC reminded people about the change. It said: “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 new system is known as Making Tax Digital (MTD) for Income Tax and will launch on April 6.

The Government website says it marks a “significant” and “ultimately time-saving” change in how people need to keep digital records and report their income.

GOV.UK says: “By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of the government’s Plan for Change.

“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.”

James Murray MP, exchequer secretary to the Treasury, commented to say: “MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth. By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.

“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”

Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.

Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028.

For more information, visit the Government website here.

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