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UK to Launch Digital Income Tax for 860,000 Self-Employed Workers and Landlords on 6 April

Advisers warn many remain unprepared, urging immediate adoption of HMRC-recognised software.

Overview

  • From April 2026, those with qualifying gross income above £50,000 must keep digital records, use recognised software and send quarterly updates, then make a final declaration by 31 January.
  • HMRC says quarterly updates are light touch rather than extra full returns, and thousands have already registered with over 12,000 updates filed in testing.
  • A temporary 12-month grace period removes penalty points for late quarterly updates for April 2026 joiners, before the new points system leads to a £200 fine after four points.
  • The threshold widens in phases, falling to £30,000 in April 2027 and £20,000 in April 2028, taking the total in scope toward about 2.9 million.
  • Support and safeguards include free guidance, webinars and some free software options, plus exemptions for people genuinely unable to use digital tools.