Quarterly online reporting to become mandatory for higher earners under HMRC shake-up

MORE than 860,000 sole traders and landlords across the UK are being urged to prepare now for major changes to the way they report tax, with new digital rules coming into force in just two months.

From April 6, thousands of self-employed workers and property landlords earning over £50,000 a year will be required to keep digital records and submit quarterly income updates to HM Revenue & Customs under the Government’s Making Tax Digital scheme.

The changes form part of a wider overhaul designed to modernise the tax system and reduce errors.

Instead of submitting figures once a year, those affected will use approved software to record income and expenses throughout the year and send short quarterly summaries to HMRC. Officials stress these are not extra tax returns, but updates intended to spread the workload and avoid the usual January rush.

Free and paid software options are available, with the system automatically generating the figures needed for submission.

At the end of the tax year, users will still file a Self Assessment return, but most of the information will already be stored digitally.

Craig Ogilvie, HMRC’s Director of Making Tax Digital, said the move should make tax reporting simpler.

He said: “With two months to go until MTD for Income Tax launches, now is the time to act. The system is straightforward and helps reduce errors. Thousands have already tested it successfully.

“Spreading your tax admin throughout the year means avoiding that last-minute scramble to complete a tax return every January.”

More than 12,000 quarterly updates have already been submitted during a voluntary trial.

Phased rollout

The new rules will be introduced gradually:

• From April 2026 – those earning £50,000 or more
• From April 2027 – those earning £30,000 or more
• From April 2028 – those earning £20,000 or more

To ease the transition, HMRC says it will not issue penalty points for late quarterly submissions during the first 12 months.

After that, a points system will apply, with a £200 fine only triggered once four late submissions are reached.

Anyone unable to use digital tools for genuine reasons can apply for an exemption.

Tax agents and accountants are advising clients to prepare early to avoid last-minute problems.

Further guidance, webinars and sign-up details are available via GOV.UK.

Former Conservative council leader tasked with building support ahead of Senedd elections

DAN THOMAS has been appointed as the new Welsh leader of Reform UK, in a move the party says will strengthen its organisation ahead of next year’s Senedd elections.

Thomas, a former Conservative council leader, will head Reform’s campaign across Wales as the party attempts to convert growing polling support into seats at devolved level for the first time.

The appointment marks Reform’s most significant step yet in formalising its Welsh structure, with the party seeking to present itself as a credible alternative to Labour, the Conservatives and Plaid Cymru.

Party sources say his brief is straightforward: build candidates, grow membership and turn dissatisfaction with mainstream politics into votes.

Shift from the Conservatives

Thomas’s move follows a broader trend of defections from the Conservative Party to Reform UK, both in Wales and across the UK.

In recent weeks, former Conservative Senedd member James Evans also switched allegiance, signalling unrest within Tory ranks and giving Reform higher-profile figures to front its Welsh campaign.

Reform has increasingly targeted voters frustrated with NHS waiting lists, cost-of-living pressures and rural economic concerns, arguing that the established parties have failed to deliver meaningful change.

Supporters say Thomas brings experience of local government leadership and campaigning, which they believe will help professionalise the party’s operations in Wales.

Critics hit out

However, opponents have been quick to criticise the appointment.

Plaid Cymru leader Rhun ap Iorwerth described Thomas as effectively “Farage’s deputy”, claiming his role would be focused more on advancing the ambitions of Nigel Farage than developing policies tailored to Wales.

Plaid figures argue Reform is largely made up of former Conservatives and lacks detailed plans on devolved issues such as health, education and local government funding.

They have also pointed to the party’s past controversies, including the conviction of former Wales figure Nathan Gill, though Reform says it is now under new leadership and direction.

Election battle ahead

Recent polling suggests Reform could play a significant role in shaping the next Senedd, with support rising in parts of south and west Wales where voters have traditionally backed Labour or the Conservatives.

If those numbers translate into seats, Reform could disrupt the balance of power in Cardiff Bay and complicate coalition maths after the election.

For Thomas, the challenge will be turning protest votes into an organised ground campaign capable of winning constituencies under Wales’s proportional system.

Whether Reform’s momentum continues — or stalls under scrutiny — is likely to become clearer as candidates are selected and manifestos published in the months ahead.

Reform UK has said more details about its Welsh policy platform will be announced later this year.

COUNCIL TAX in Ceredigion is expected to rise by 4.7 per cent for the next financial year, following a better-than-expected funding settlement from the Welsh Government that has eased pressure on the county’s budget.

The increase is significantly lower than earlier projections, which had suggested a rise of close to nine per cent, and comes after additional grant funding was secured for local authorities across Wales.

Last year, council tax in Ceredigion rose by 9.3 per cent as part of the 2025–26 budget.

While council tax accounts for only part of the authority’s income, a key element of its funding comes from Aggregate External Finance (AEF) provided by the Welsh Government.

Under the provisional settlement, Ceredigion County Council was initially set to receive a 2.3 per cent uplift—around £3.39m—bringing its total settlement to approximately £150.67m. This placed Ceredigion joint 13th out of Wales’ 22 local authorities.

However, following a subsequent agreement between the Welsh Government and Plaid Cymru, further funding was made available to councils, improving Ceredigion’s financial position.

Speaking last November, before the enhanced settlement was confirmed, council leader Cllr Bryan Davies warned that early estimates suggested an 8.9 per cent council tax rise might be required. Further modelling of service pressures and potential operational savings later reduced that estimate to 6.9 per cent.

The improved funding outlook was outlined to Cabinet in January by the Cabinet Member for Finance and Procurement, Cllr Gareth Davies, who proposed a 4.75 per cent increase as part of a draft budget requirement of £221.493m.

Members of the council’s Corporate Resources Overview and Scrutiny Committee heard on Monday (February 3) that the position had improved again. Additional financial support towards the Mid and West Wales Fire and Rescue Service levy has allowed the projected increase to fall slightly further, to 4.7 per cent.

For a typical Band D household, this would equate to an increase of around £7.39 per month in the next financial year.

The committee agreed to note the revised figure. A formal recommendation on council tax levels will be considered by Cabinet on February 10, with the final budget decision due to be made by full council on March 2.