Hundreds of thousands of UK households could be in for a surprise £500 tax bill after a HMRC change. Nearly 900,000 business owners across the UK are at risk from the Labour Party government ushering in the era of Making Tax Digital.

The change will require people over a certain income threshold to keep electronic records and file updates every financial quarter.

But experts have warned that the cost of reporting your tax figures could cost up to £500 a year once staff training, software and admin time are factored in. George Holmes, managing director of Aurora Capital, has led the criticism.

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Craig Ogilvie, director of Making Tax Digital at HMRC, said: "With April 2026 on the horizon, we are issuing letters to cu

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