With just days to go before the introduction of Making Tax Digital (MTD) for Income Tax (IT), HMRC have written 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 Low Incomes Tax Reform Group (LITRG) is reporting that taxpayers who submitted their 2024-25 tax return between 1 December 2025 and 31 January 2026 showing gross income from self-employment and property in excess of the £50,000 MTD threshold should 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.
LITRG 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 if so, signing up, regardless of whether a mandation letter is received.
HMRC should have written to taxpayers who submitted their 2024-25 returns before 1 December 2025 in previous mailing rounds.
LITRG states that, "If you haven’t managed to sign up and get software in place by the beginning of April, then don’t panic. You should sign up as soon as you can, decide which software you want to use and begin to keep records digitally. The first Making Tax Digital deadline is to submit a quarterly update by 7 August. As long as your digital records are up to date for the three-month period from April 2026 by the time this update is due, this deadline can then be met. There is no penalty for not signing up by 6 April 2026, but you do risk falling behind on record keeping if you do not get prepared in the near future."
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?
External link
LITRG: HMRC’s latest letter drop about Making Tax Digital lands just before Easter start date