{
  "url": "https://openlegislation.uk/income-tax-digital-obligations-regulations-2026/note",
  "json_url": "https://openlegislation.uk/income-tax-digital-obligations-regulations-2026/note.json",
  "legislation": "uksi/2026/336",
  "legislation_title": "The Income Tax (Digital Obligations) Regulations 2026",
  "legislation_url": "https://openlegislation.uk/income-tax-digital-obligations-regulations-2026",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations make provision requiring the use of software to deliver information relating to income tax to His Majesty’s Revenue and Customs (“HMRC”) and to keep related records.\nPart 1 contains general provisions. Regulation 1 provides for citation and commencement. Regulation 2 is an interpretation provision.\nPart 2 (regulation 3) defines the “functional compatible software” which must be used to comply with obligations under the Regulations.\nPart 3 determines the period for which a relevant person must comply with digital obligations relating to a relevant activity. Regulation 4 introduces regulations 5, 6 and 7. Regulations 5 and 6 respectively define “digital start date” and “digital termination date”, by reference to the person’s carrying on and cessation of a relevant activity. Regulation 7 uses these concepts to determine the “digital obligation tax years” for which a person’s digital obligations in relation to the relevant activity apply.\nPart 4 requires a relevant person to use functional compatible software to give HMRC information relating to income tax for digital obligation tax years. Regulation 8 requires the person to use functional compatible software when delivering a tax return required under section 8 of the Taxes Management Act 1970. Regulation 9 requires the person to use functional compatible software to give HMRC quarterly updates relating to the relevant activity. Regulation 10 provides for the content of such updates. Regulation 11 allows a person to elect for quarterly periods to be defined instead by reference to calendar quarters. Regulation 12 defines the quarterly update periods and associated deadlines where no calendar quarters election has effect. Regulation 13 provides for the consequences of such an election. Regulation 14 makes provision for the date on which the final quarterly update period ends.\nPart 5 (regulation 15) requires a relevant person to use functional compatible software to keep digital records.\nPart 6 makes provision concerning amendments and corrections. Regulation 16 allows a relevant person to use functional compatible software when giving notice of an amendment of a return delivered using such software. Regulation 17 requires a person to correct digital records and quarterly updates upon becoming aware of errors or omissions.\nPart 7 provides for various exemptions from digital obligations.\nChapter 1 makes provision concerning excluded persons. Regulation 18 provides for an exemption from digital obligations when an exclusion notice is in place. Regulation 19 makes provision for HMRC to give an exclusion notice to a person considered to be excluded. Regulation 20 defines “excluded”.\nChapter 2 provides for exemptions by reference to the amount of qualifying income and the qualifying amount. Regulation 21 provides for an exemption where the Chapter applies. Regulation 22 provides the conditions for an income-based exemption for the tax year 2026-27. Regulations 23 and 24 provide for additional income-based exemptions for subsequent tax years. Regulation 25 defines “qualifying income”, used in the application of regulations 22 to 24. Regulation 26 provides for the determination of qualifying income. Regulation 27 defines the “qualifying amount” for a tax year.\nChapter 3 provides for exemptions from digital obligations relating to descriptions of activity. Regulation 28 provides for three exemptions: relevant activities carried on by a trustee; the activity of a visiting performer; and the provision of qualifying care. Regulation 29 provides for exemptions for overseas activities in two cases involving non-residence.\nChapter 4 provides for exemptions from digital obligations for relevant persons having specified descriptions. The exemptions under Section 1 of the Chapter apply where the person had a specified description at any point in the previous filing tax year (regulation 30) or begins to have that description after the end of the previous filing tax year (regulation 31). Regulations 32 to 34 specify the descriptions of person to whom these exemptions apply: donors of powers of attorney and persons in respect of whom deputies, guardians or controllers have been appointed (regulation 32); ministers of religion (regulation 33); and Lloyd’s underwriters (regulation 34). Section 2 of the Chapter (regulation 35) provides for a further exemption where an individual had no national insurance number on the last day (5th April) of the previous tax year.\nChapter 5 provides for exemptions based on a relevant person’s chargeability to income tax or entitlement to certain reductions or allowances. Regulation 36 provides for an exemption where the Chapter applies. Regulation 37 provides for an exemption for companies chargeable to tax under Part 2 of ITTOIA 2005. Regulation 38 provides for an exemption for persons entitled to reductions for married couples or allowances for blind persons.\nChapter 6 provides for temporary exemptions for the tax year 2026-27. Regulation 39 provides for a temporary exemption where the Chapter applies. Regulation 40 provides for a temporary exemption for persons with income from trusts. Regulation 41 provides for a temporary exemption for visiting performers. Regulation 42 provides for a temporary exemption for providers of qualifying care. Regulation 43 provides for a temporary exemption for persons meeting certain conditions related to residence and the foreign income and gains regime. Regulation 44 provides for a temporary exemption for farmers and creative artists entitled to averaging of profits.\nPart 8 contains miscellaneous provisions. Regulation 45 allows the Commissioners for HMRC to make provision for further exemptions. Regulation 46 allows the Commissioners for HMRC to make provision for identity verification conditions which must be satisfied by relevant persons in complying with digital obligations. Regulation 47 makes provision about notices. Regulation 48 revokes the Income Tax (Digital Requirements) Regulations 2021 (S.I. 2021/1076) and the Income Tax (Digital Requirements) (Amendment) Regulations 2024 (S.I. 2024/167). S.I. 2021/1076, as amended by S.I. 2024/167, imposed digital obligations in relation to income tax but did not come into force and is no longer required because of the provision made by this instrument.\nA Tax Information and Impact Note covering this instrument was published on 22nd February 2024 alongside S.I. 2024/167. This has been updated as a result of changes to the impacts as a result of this instrument and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2026/336/note",
    "retrieved_at": "2026-10-28T21:03:38.080943+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}