Other measures
Making Tax Digital for Income Tax
Making Tax Digital for Income Tax was introduced from 6 April 2026 for sole traders and landlords whose combined qualifying income from self-employment and property exceeded £50,000. From 6 April 2027, it will be extended to individuals whose qualifying income for 2025/26 was more than £30,000. Those with qualifying income of more than £20,000 are currently due to join from April 2028.
The threshold is based on combined gross income from self-employment and property before expenses, rather than taxable profit, using the income figures reported on the individual’s Self-Assessment return (the 2026/27 threshold was based on the 2024/25 tax return). Individuals within MTD must use compatible software to keep digital records, provide quarterly updates to HMRC and submit their annual Self-Assessment return.
Those entering MTD from April 2027 will not receive late-submission penalty points for their four quarterly updates during 2027/28. Taxpayers who entered MTD in April 2026 will become subject to the normal quarterly late-submission penalty regime for 2027/28.
Fuel duty
Following the same course as his predecessor, the Chancellor decided to maintain the freeze in fuel duty and to retain the 5p cut beyond January 2027, when it was supposed to come to an end. The intention now is to end the freeze on 1 July 2027, when inflation-linked increases should resume.