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HMRC is making its "biggest" change in 30 years for one type of tax, and many Brits who earn more than £50,000 will be affected. The tax office has issued a fresh alert to anyone who is self-employed or earns money from property, as a new way to complete Self Assessment will be introduced from April 2026. "If your turnover from property and selfemployment is over £50,000, you'll need to keep digital records and send quarterly updates using recognised software," HMRC said in a fresh update for taxpayers.

The new Making Tax Digital for Income Tax campaign is changing the way these Brits will record and report their income and expenses. "It's the biggest change since HMRC launched Self Assessment more than 30 years ago," HMRC says. Instead of filing your tax return all at once, you will split and spread the admin throughout the year. Those affected have been asked to sign up before April via the government's Making Tax Digital website.

You will send quarterly updates, which will be simple summaries of how your business is doing, pulled from your own records. You will then be able to see an estimate of your tax bill after sending each update, allowing you to plan ahead.

However, the deadline of January 31 for paying your tax bill will still be the same. But there will be less filing to do before the strict deadline, as the software can tally up the whole year from your quarterly updates.

The new system is being rolled out in phases. However, anyone who earns more than £50,000 in a year will need to start using the recognised software from April 6, 2026.

Those who earn over £30,000 will need to start using it by April 6, 2027. If your annual turnover is above £20,000 you need to start using it by April 6, 2028.

There is no one software or app that is designed for Making Tax Digital. Instead, the campaign has partnered with several different software that facilitates the digitalisation and formation of records. HMRC instructs people to find the software that works for them here.

Accountants, agents and bookkeepers can do Making Tax Digital for Income Tax on their clients' behalf, as long as they have their permission.

The new system has not been in use yet, so business owners, landlords and self-employed workers have not shared their thoughts on it yet. HMRC says it has several benefits.

For example, logging business activity more regularly means you have to hold onto fewer receipts throughout the year. Meanwhile, it allows you to see your predicted tax bill, which can help you plan better when it comes to your finances.