Brits have been handed a last-minute warning by HMRC ahead of a major tax shake-up. The tax authority says there is now just one week to prepare before Making Tax Digital (MTD) for Income Tax begins on April 6 for those earning more than £50,000 from self-employment or property. In a social media alert, HMRC said: “One week to go until Making Tax Digital! From 6 April, Making Tax Digital applies if your combined turnover from property and self-employment is over £50,000.

“Don’t leave it to the last minute – sign up now and get set up with recognised software.”

The warning comes as part of what HMRC has described as the biggest overhaul to the tax return system since Self Assessment was introduced more than 30 years ago.

Under the changes, taxpayers will no longer file a single annual return covering all their income in one go. Instead, they will be required to keep digital records and submit updates to HMRC every quarter using approved software.

At the end of the tax year, they must still submit a final declaration by January 31, confirming their overall tax position.

The new regime will initially apply to people with turnover above £50,000 from April 2026. It is then due to be extended to those earning more than £30,000 from April 2027, significantly widening the net.

Earlier announcements have also confirmed that HMRC intends to eventually bring in those earning over £20,000, although a start date for that group has yet to be finalised.

Taxpayers caught by the changes will need to use compatible digital tools – either apps, accounting software or “bridging software” linked to spreadsheets – to record income and expenses in real time.

They will also have to send at least four quarterly updates to HMRC each year, effectively spreading the administrative burden across the year rather than completing it in one annual submission.

HMRC argues the move will reduce errors and help people stay on top of their tax affairs, but critics have warned it could increase complexity and costs for small businesses and landlords, particularly those unfamiliar with digital systems.

The latest alert underlines concerns that many affected taxpayers may still be unprepared just days before the rules come into force.

HMRC is urging anyone who thinks they may be affected to check their turnover, choose suitable software and sign up immediately to avoid disruption when the new tax year begins. Details can be found here.