With the introduction of Making Tax Digital (MTD) for Income Tax (IT) around two months away, HMRC are now writing to more 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, unless an exemption applies.
The Institute of Chartered Accountants in England and Wales (ICAEW) is reporting that taxpayers who submitted their 2024-25 tax return between 1 September 2025 and 30 November 2025 showing gross income from self-employment and property in excess of the £50,000 MTD threshold, should, within the next two weeks, 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 from the middle of March 2026 to taxpayers who submitted their 2024-25 tax return from 1 December 2025 onwards. Some taxpayers may not receive their letter until the end of March or early April.
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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