HMRC has begun sending letters to taxpayers who will be legally required to use Making Tax Digital for Income Tax (MTD For ITSA) from April 2026. The letters are going to individuals whose 2024/25 Self Assessment return shows gross income above £50,000 from property, self-employment, or both. With April 2026 now less than two months away, HMRC has moved from general awareness messaging to directly contacting those who must comply.
This is not the start of MTD. It is a formal notification confirming that the regime is imminent and that affected taxpayers are expected to be ready.
Who Is Receiving HMRC Letters?
HMRC is writing to taxpayers whose 2024/25 Self Assessment return shows gross income above £50,000 from property, self-employment, or both. The threshold applies to gross income, not profit. A landlord with £55,000 in annual rental receipts is within scope.
The letters are being sent in three batches. The first went out in November 2025 to those who filed by 1 August 2025. The second is being sent in February 2026 to those who filed by the end of November 2025. A final batch follows from mid-March 2026, covering taxpayers who filed by the 31 January 2026 deadline. HMRC estimates around are expected to be contacted.
Important:
HMRC is not copying these letters to tax agents. If you receive one, your accountant will not know unless you tell them directly.
HMRC Letters: Decoding the Facts vs. the Myths
The letter is a notification, not an enrolment. Receiving it does not mean you have been signed up for MTD.
"Sample MTD mandation letter issued by HMRC, February 2026"   |
Registration remains your own responsibility. The letter advises taxpayers with an agent to share it with them and discuss next steps.
Not receiving a letter does not mean you are outside MTD's scope. If your gross income from property and self-employment exceeded £50,000 in 2024/25, you are required to comply from April 2026 regardless of whether HMRC's letter reaches you. The obligation is determined by your income level, not the correspondence you receive.
If you already have an agreed digital exclusion exemption for MTD ITSA, the letter does not change your status, but you should retain it with your records and ensure HMRC’s exemption still applies to your current circumstances.
What MTD Requires From April 2026?
From 6 April 2026, taxpayers within Making Tax Digital must keep digital records using HMRC-recognised software, submit four quarterly updates to HMRC across the tax year, and complete a final declaration at year end.
This replaces the single annual Self Assessment return that landlords and sole traders currently submit. The tax liability itself does not change. What changes is how often and through what method income is reported to HMRC.
What Landlords and Sole Traders Should Do Now?
Start by checking your 2024/25 Self Assessment return and confirming whether your combined gross income from property and self-employment exceeds £50,000. If it does, April 2026 applies to you.
Next, look at compatible MTD software. HMRC recognises a range of options, including software built specifically for landlords. Selecting something now gives you time to set up digital records before the April start date.
If you use an accountant, contact them and share the letter if you have received one. They will not have been sent a copy automatically.
One relief worth noting:
HMRC has confirmed no penalties will apply for late submission of the first four quarterly updates. This gives some adjustment time in year one but does not remove the requirement to be registered and operating within MTD from April onwards.
What Comes Next for MTD Letter?
The April 2026 phase covers landlords and sole traders with gross income above £50,000. This is only the first wave. Those with income above £30,000 will be brought in from April 2027, and those above £20,000 from April 2028.
The letters arriving now represent HMRC shifting from awareness campaigns to individual, named mandation based on submitted tax return data. For landlords within the £50,000 threshold, preparation cannot wait. For those currently below it, the April 2027 phase will arrive sooner than expected and the steps required are identical.
