With the introduction of Making Tax Digital (MTD) for Income Tax (IT) less than six months away, HMRC have begun writing to taxpayers who will be mandated into the regime from 6 April 2026.
Making Tax Digital (MTD) for Income Tax (IT) becomes mandatory from 6 April 2026 for sole traders and landlords with a total turnover in 2024-25 exceeding £50,000.
The Institute of Chartered Accountants in England and Wales (ICAEW) is reporting that taxpayers who submitted their 2024-25 tax return before the end of August 2025, showing gross income from self-employment and property in excess of the £50,000 MTD threshold, should now receive a letter from HMRC advising of their mandation into MTD for IT from April 2026.
- Copies of these letters will not be sent to tax agents.
- The letters explain what MTD for IT is, to whom it applies, and how to prepare for its introduction.
Further letters will be sent in the coming months:
- Taxpayers who submit their 2024-25 tax return between September 2025 and January 2026 will be sent a mandation letter in February/March 2026 if they are required to comply with MTD for IT from April 2026.
- Towards the end of November 2025, HMRC will write to unrepresented taxpayers who have not filed their 2024-25 tax return to notify them of the April 2026 start date for MTD for IT.
- This letter will be based on 2023-24 tax return information.
The ICAEW reminds individuals that while HMRC are sending mandation letters, taxpayers remain responsible for checking if they are required to comply with MTD for IT, and signing up if relevant (regardless of whether a mandation letter is received).
Useful guides on this topic
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Making Tax Digital: Survival guide (for the self-employed & landlords)
The way that some self-employed taxpayers report their business profits to HMRC is set to change under the Making Tax Digital (MTD) for business regime, when it begins to apply to Income Tax reporting.
Penalties: Late Filing MTD
A points-based late submission penalty regime is replacing existing late submission penalties for VAT and Income Tax Self Assessment (ITSA) under Making Tax Digital.
Making Tax Digital: Planner & Timeline
When does Making Tax Digital (MTD) apply? What does MTD really mean? How will it affect you?
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