Tax codes UK 2025/26: Full list of HMRC codes from April 2025 - what they mean, deductions and 1257L explained

Tax codes UK 2025/26: Full list of HMRC codes from April 2025 - what they mean, deductions and 1257L explained

Here’s what your income tax code really means and how to check you are paying the right amount.

HMRC change is being introduced from 2026

The move will require sole traders and landlords with an income above £50,000 to use Making Tax Digital for Income Tax for the first time from April 6, 2026.

Self-employed: New digital tax reporting rules start April 2026 (Making Tax Digital)

From April 2026, the way self-employed individuals and landlords report their income tax to HMRC will change significantly. Under the new Making Tax Digital system, anyone with an income over £50,000 will be required to send quarterly updates to HMRC instead of a single annual return.

Is there a risk that Making Tax Digital could accelerate retirement for older taxi drivers?

The upcoming introduction of Making Tax Digital (MTD) for Income Tax in April 2026 could push some older taxi drivers to consider retirement earlier than planned. Under the new rules, self-employed individuals, including cab drivers, earning over £50,000 will be required to keep digital records and file quarterly income and expense updates using approved software.While the changes are intended to streamline tax reporting and reduce errors, conce…