Loading profile data...

Loading profile data...

BUSINESS NEWS

HMRC to contact sole traders about need to submit quarterly tax information

HMRC to contact sole traders about need to submit quarterly tax information
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Fri 21st Feb 2025

HM Revenue & Customs (HMRC) will soon begin writing to sole traders and landlords whose 2023 to 2024 Self Assessment tax return shows their income was over or close to £50,000 that they may need to use Making Tax Digital (MTD) for Income Tax.

In its latest update to accountants and other agents, HMRC said it would start to get in contact with relevant tax payers from April this year.

From April 2026, self-employed individuals and landlords with an annual income over £50,000 will be required to submit quarterly tax updates to HMRC using approved software. It will be extended to those with income over £30,000 in April 2027.

The government estimates that around 780,000 people will be covered by MTD in 2026, with a further 970,000 in 2027.

Sole traders and landlords can sign up in advance of the deadline and take part in testing of the new system. Tax agents can sign up their clients, or taxpayers can register themselves.

MTD for Income Tax was first due to come into force in April 2023 but in September 2021, the change was delayed until April 2024 due to the impact of the coronavirus pandemic. In December 2023, the government announced another delay.

Making Tax Digital already applies to VAT.

Relevant Making Tax Digital for Income Tax resources

Find out if and when you need to use Making Tax Digital for Income Tax

Sign up voluntarily for Making Tax Digital for Income Tax

Book a free adviser call with an accountant

Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's Local Leader for Bristol. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

You might also like…

Get business support right to your inbox

Subscribe to our newsletter to receive business tips, learn about new funding programmes, join upcoming events, take e-learning courses, and more.