Making tax digital for income tax to begin on April 6

The UK government’s major shift toward a modern, paperless tax system is reaching its next critical milestone. HM Revenue and Customs (HMRC) has confirmed that the Making Tax Digital (MTD) mandate for Income Tax Self Assessment (ITSA) will officially commence on April 6, 2026. This transition marks a fundamental change in how self-employed individuals and landlords manage their financial records and report their earnings.

For the vast network of Turkish entrepreneurs, shopkeepers, and property owners across London—especially in boroughs with high concentrations of self-employed residents like Enfield, Hackney, and Haringey—preparing for this digital shift is now an immediate priority.

Who is affected by the new rules?

The initial rollout of MTD for Income Tax applies to self-employed individuals and landlords with a total qualifying income of more than £50,000. Under the new rules:

• Digital Records: Paper-based accounting will no longer be sufficient; taxpayers must keep digital records of all income and expenses.

• Quarterly Updates: Instead of a single annual tax return, taxpayers in boroughs like Islington and Barnet will be required to send digital updates to HMRC every three months.

• Final Declaration: An end-of-period statement will still be required to finalize the tax year's liability.

Impact on the Turkish business community

The Turkish diaspora plays a vital role in the London economy, operating thousands of SMEs in Waltham Forest, Newham, and Camden. For many business owners who are used to traditional bookkeeping methods, the requirement to use HMRC-compatible software may present a learning curve.

"The goal of MTD is to reduce errors and provide a real-time view of tax liabilities," says a community financial consultant. "However, for our community in North London, it means an urgent need to transition to digital platforms and ensure their accountants are MTD-ready."

Preparing for April 6

HMRC encourages taxpayers to sign up for the pilot scheme early to familiarize themselves with the software. Residents in Southwark and Westminster are advised to check if their current accounting software is compatible or to consult with a professional to avoid potential penalties for non-compliance.

As the deadline approaches, staying informed through community news sources and professional advice will be the best way to ensure a smooth transition into the digital era of taxation.