Workers in the UK have been reminded of a major tax change coming into effect soon. HM Revenue and Customs (HMRC) advised that self-employed people will have to use a new system come April.

The change applies to self-employed people and landlords if they make more than £50,000 a year. It means they will have to submit online updates every three months rather than doing it all during tax return time.

In a post made to social media platform X, HMRC said: “With Making Tax Digital, you’ll send simple quarterly summaries using recognised software, then one annual return that pulls in the info you’ve shared across the year.

“If your combined turnover from self-employment and property is over £50,000, flip your routine to little-and-often now.” It then directed people to GOV.UK for more information.

On the Government website, it says the move marks a “significant” and “ultimately time-saving” change in how people need to keep digital records and report their income.

GOV.UK says: “By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of the government’s Plan for Change.

“Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush.”

James Murray MP, exchequer secretary to the Treasury, said: “MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth. By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.

“This is a crucial step in this government’s decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.”

Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted.

Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028.

Workers are encouraged to sign up now to the scheme ahead of the April date to make sure they’re ready in time. You can do this here.

For more information, visit the Government website here.