HMRC has issued a warning to some Britons earning £50,000 or more. In a post on X conciding with Shrove Tuesday (otherwise known as “pancake day”) HMRC reminded some taxpayers that the way they file their tax returns will change considerably this year, as it moves to an all-digital tax system.

The post read: “Bite-size updates beat big stacks. 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.” Britons with combined gross income from sole trades and property that exceeds £50k in the 2024/25 tax year will need to sign up to Making Tax Digital (MTD) for income tax before it’s introduced in April 6, 2026.

The MTD scheme for was brought in for VAT-registered businesses in 2022 as part of the transition. The new rules mean higher-earning self-employed people and landlords will need to file updates on their income and expenses four times a year and pay for approved software to submit them with.

The Institute of Chartered Accountants in England and Wales (ICAEW) said people this category need to sign up in advance or get their agents (tax professionals, accountants) to do so on their behalf to avoid a nasty surprise.

Mandation letters began to be sent out those who filed their Self-Assessment tax return for 2024/25 by the end of August last year, asking them to sign up, the organisation says.

Letters for those who filed their 2024/25 returns between September 2025 and January 2026 are set to be sent out this month and in March.

But the ICAEW cautions that some taxpayers subject to the new rules will not receive their letters until April, at which point they’ll need to start keeping digital accounting records, unless they already do.

Taxpayers may assume that the they’ll be automatically signed up to MTD by HMRC, but this isn’t the case. Eligible people must get it set up themselves even if they don’t receive a letter.

Lindsey Wicks, ICAEW Senior Technical Manager, Tax Policy, said: “MTD for income tax represents the most significant change to income tax reporting for taxpayers and agents for almost three decades.

“It is important that taxpayers understand their responsibilities, beginning with signing up for MTD income tax.

“Once in MTD income tax, they will need to keep digital records and submit quarterly updates and an end of year return to HMRC using compatible software.

“A letter from HMRC indicates that it’s time to get serious about MTD income tax,” she added. “Taxpayers should consider signing up now, and agents should consider how and when they will sign up their clients, so they can get ahead of the curve before the first quarterly updates are due for submission by 7 August.”