#2026/370The Finance Act 2021 (Income Tax and Capital Gains Tax) (Penalties) (Appointed Day: Digitally Obligated Persons) Regulations 2026
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These regulations appoint 6 April 2026 as the day on which specific penalty provisions in the Finance Act 2021 come into force for digitally obligated persons. The penalties relate to failures to comply with new digital reporting and record-keeping requirements for Income Tax and Capital Gains Tax. Digitally obligated persons are individuals and businesses required to use HMRC’s Making Tax Digital (MTD) service for submitting quarterly updates and end-of-period statements. The regulations exercise powers under sections 116, 117 and 118 of the Finance Act 2021 to set the exact commencement date for the penalty regime.
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Key Changes
- Appoints 6 April 2026 as the official appointed day for penalty provisions under Finance Act 2021
- Introduces penalties for digitally obligated persons failing to meet Making Tax Digital quarterly update and record-keeping requirements
- Applies to individuals and businesses required to use HMRC's MTD service for Income Tax and Capital Gains Tax
+ 2 more changes with Pro
Obligations
What this law requires
Digitally obligated persons must use HMRC's Making Tax Digital (MTD) service to submit quarterly updates for Income Tax purposes
Digitally obligated persons must use HMRC's Making Tax Digital (MTD) service to submit end-of-period statements for Income Tax purposes
Digitally obligated persons must comply with new digital record-keeping requirements for Income Tax as specified under the Finance Act 2021
Digitally obligated persons must comply with new digital reporting and record-keeping requirements for Capital Gains Tax as specified under the Finance Act 2021
Penalty provisions under Finance Act 2021 sections 116, 117, and 118 apply to failures in digital reporting and record-keeping compliance with effect from 6 April 2026