HMRC issue letter to unrepresented taxpayers about Making Tax Digital

HMRC are writing to some unrepresented taxpayers who they believe may be required to follow the Making Tax Digital rules from April 2026. Unrepresented taxpayers are those without a tax agent. If you have an accountant or tax adviser who files your tax return on your behalf, or if you have an agent listed on your self assessment record, you will not receive this new letter.  The letter explains how to find more information about Making Tax Digital and what to do next.

Whether or not you are required to join Making Tax Digital from April 2026 will depend on the level of your gross self-employment and/or property income for the 2024/25 tax year. If this is more than £50,000 for 2024/25 then you will have to follow the new rules from April 2026 unless you are exempt. We explain how to calculate gross income on the Making Tax Digital for Income Tax page on our website and there is more information on who is exempt below.

We explain what you need to do now to get ready for the start of Making Tax Digital in April 2026 on our website. You should only sign up for Making Tax Digital if you are sure that your gross income for the 2024/25 tax year was more than £50,000.

If you have not already done so, it is important that you file your 2024/25 tax return as soon as possible. This will help you work out your gross income for that year and therefore whether Making Tax Digital will apply to you from April 2026. 

  Some individuals are automatically exempt from using Making Tax Digital. If you think you are digitally excluded, you can also apply to HMRC for an exemption.  A small number of people are exempt for now, for example individuals who claim blind person’s allowance, however it is likely they will be in scope of the new rules eventually. You may have still received a letter from HMRC, even if you fall under one of the exemption categories. More information on exemptions for Making Tax Digital can be found here.

If you have not received a letter, you may still be within the scope of Making Tax Digital from April 2026 and so need to check whether your gross income for 2024/25 is more than £50,000. This will be particularly relevant for taxpayers whose self-employment and/or property income has increased in 2024/25, compared to 2023/24.

HMRC should send out further letters to taxpayers shortly after the filing deadline for 2024/25 tax returns i.e. 31 January 2026, confirming that they are legally required to follow the new rules from April 2026. These letters are likely to be sent out in February and March 2026. As this is very close to April 2026, it is important to begin preparing for Making Tax Digital as soon as possible rather than waiting to receive a confirmation letter from HMRC. Once you know you will definitely be required to use Making Tax Digital, you should then choose compatible software and sign up on GOV.UK. HMRC’s software choices tool may help you decide what software is best suited to your needs.