Millions of Brits Unprepared for Major Tax Digitalization in April 2026
Millions Unprepared for Major Tax Changes in 2026

Millions of Brits Unprepared for Major Tax Digitalization in April 2026

Millions of Brits have been warned they are "simply unprepared" for the upcoming launch of Making Tax Digital (MTD) for Income Tax, set to begin in April 2026. This landmark shift will require self-employed individuals and property owners with qualifying income over £50,000 to maintain digital records and report their income to HMRC quarterly, moving away from annual manual filings.

Phased Implementation and Key Deadlines

The changes will be introduced in two phases:

  • April 2026: For those with qualifying income exceeding £50,000.
  • April 2027: For those with qualifying income over £30,000.

This transition aims to improve accuracy in tax reporting, but experts emphasize the urgent need for preparation to avoid last-minute scrambles.

Expert Warnings and Community Awareness

Gwion Thomas, founder of LITT, a sole trader and freelancer accounting app, advised affected taxpayers to "get ready now before it's too late." He highlighted that MTD represents a significant change in UK tax administration, requiring digital record-keeping and quarterly reporting for millions.

Matthew Knight, Chief Freelance Officer at The Independency Co., noted that awareness of MTD for Income Tax Self Assessment (ITSA) remains incredibly low among freelancing communities. Many who are aware are procrastinating, unclear about the necessary steps. He pointed out potential additional burdens, such as costs for software and time, especially for those using spreadsheets.

Potential Benefits and Urgent Calls to Action

Despite the challenges, Knight suggested there could be mental health benefits from managing accounts quarterly rather than facing the stress of annual deadlines. He referenced that 475,722 people submitted their returns on the deadline day this year, leaving no room for errors.

Both experts are urging freelancers and property owners to prepare immediately, understand the additional work involved, and not wait until April 2026 to avoid confusion and potential penalties.