“What does digital tax mean?”

I am independent and I understand that I will have to make a big change in the way I point out my tax.

Please explain the new digital tax requirements?

Eddy from Nottingham

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“You will have to submit tax updates every three months”

Mike Croxford, which one? Expert in money, said …

The creation of Digital Tax obliges you to use software to record accounts and to subject tax updates each quarter, rather than once a year, as before.

This will soon apply to people who are independent or owners, from April 6, 2026, if you have an annual income of more than £ 50,000 and April 6, 2027 if the income is more than £ 30,000.

These limits apply to gross, not net income. In other words, the amount of rent or invoiced income that you receive before subtracting your costs.

This minimum level of income is expected to be regularly examined and could change in the future.

You can find software compatible with HMRC Using their list.

The only automatic exemptions are for those who do not have a British national insurance number or if you are a caregiver with a host family.

You can request an exemption if you live in a distant region with poor wide -band access or if you have trouble using electronic communications because of your age or handicap. Call or write to HMRC to apply.

• Find out more: How rental income is taxed

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