In this week’s Enews, we look at the numbers of taxpayers that will need to report quarterly when Making Tax Digital (MTD) for Income Tax comes into force. There is also a scams warning for self assessment and the latest guidance for employers to update you on.
Over 850,000 self employed to be pulled into first phase of Making Tax Digital
HMRC has confirmed that 864,000 self-employed workers and landlords will be pulled into the quarterly reporting rules for Making Tax Digital (MTD) for Income Tax when it comes into force.
The first phase of MTD for Income Tax will begin next April at the start of the 2026/27 tax year. It will require individuals with a qualifying income over £50,000 to file quarterly returns using software with a final year end round out.
When businesses need to start using MTD for Income Tax depends on their qualifying income within a tax year. If their qualifying income is over:
- £50,000 for the 2024/25 tax year, they will need to use it from 6 April 2026
- £30,000 for the 2025/26 tax year, they will need to use it from 6 April 2027
- £20,000 for the 2026/27 tax year, they will need to use it from 6 April 2028
According to HMRC, around 2.9 million have a qualifying income above £20,000 and will need to join MTD for Income Tax, based on self assessment figures for 2023/24.
HMRC said:
‘MTD for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. They will need to keep digital records and every quarter, submit simple summaries of their income and expenses to HMRC using compatible software. This is expected to reduce the tax gap by reducing the scope for error and failure to take reasonable care.’
Internet link: GOV.UK
Warning as 170,000 self assessment scams reported to HMRC
HMRC is calling on self assessment taxpayers to remain vigilant to scams that claim to be from the department after receiving 170,000 reports of incidents.
The tax authority says that scammers often impersonate HMRC, offering fake refunds or demanding urgent payments to steal personal and banking information.
More than 170,000 scam incidents were reported to HMRC in the 12 months to 31 July 2025, and 47,000 of these reports involved fake tax refund claims.
HMRC will never:
- leave voicemails threatening legal action or arrest
- ask for personal or financial information via text message or email
- contact customers by email, text, or phone to inform them about a refund or ask them to claim one.
Anyone due a refund can claim it securely via their HMRC online account or via the HMRC app.
HMRC says that filing early can also help, as those who have already submitted their tax return are less likely to be caught off guard by scam attempts closer to the self assessment 31 January 2026 deadline.
Kelly Paterson, HMRC’s Chief Security Officer, said:
‘Scammers target individuals when they know self assessment customers will be preparing to file their tax returns. We’re urging everyone to stay alert to scam emails and texts offering fake tax refunds.
‘Taking a moment to pause and check can make all the difference. Report any suspicious activity to us before the fraudsters do any more harm. Search ‘HMRC scams advice’ and refer to the scams guidance on GOV.UK to stay informed and protect yourself.’
Internet link: HMRC press release
Latest guidance for employers
HMRC has published the latest issue of the Employer Bulletin. The August issue has information on various topics, including:
- P11D and P11D(b) for tax year 2024/25
- PAYE Settlement Agreement – calculations and payment
- employers PAYE disputed charges
- Spotlight 69 — liquidation of a Limited Liability Partnership used to avoid Capital Gains Tax
- implementation of the Employment Rights Bill.
Internet link: GOV.UK
