HMRC bringing in 'biggest change' to tax 'since 1997' with millions warned The Labour Party government's tax arm will make a digital change for UK households who pay tax, in a major change for those who work. HMRC bringing in 'biggest change' to tax 'since 1997' with millions warned HMRC is set to bring in the most "significant" change since 1997 in a huge shake-up for UK households. The Labour Party government's tax arm will make a digital change for UK households who pay tax, in a major change for those who work. There is less than a year to go until sole traders and landlords with an income over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax. ‌ The launch on 6 April 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income. Article continues below READ MORE UK faces 'five day' mini-heatwave next week as BBC Weather issues warning This is what it describes as its 'most significant change to Self Assessment since 1997'. HMRC says: "The launch on April 6 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC). "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 our Plan for Change." ‌ ARLA Propertymark President Angharad Trueman believes for small landlords, especially those who are older and less tech-savvy, the MTD requirements will be a step too far, coming on top of nervousness about the impact of the Renters’ Rights Bill. She stated that many may decide they’ve had enough and make the decision to exit the market. Property Mark advised: "Property agents must prepare for MTD by ensuring they and their clients use compatible software that meets HMRC’s requirements. "HMRC is urging agents to sign up for the voluntary testing phase for MTD for Income Tax to try the new process before it becomes mandatory. It will also help HMRC expand end-to-end testing, to ensure the systems work as they should before April 2026." Article continues below James Murray MP, Exchequer Secretary to the Treasury, says: "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.”