HMRC to write to taxpayers this month about Making Tax Digital
We have been advised that HMRC will be writing to some taxpayers in February who they believe will have to follow the rules of Making Tax Digital for Income Tax from April 2026. If you have received one of these letters, don’t ignore it. Read on to find out what it means and what to do next.
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Why are HMRC writing to taxpayers?
HMRC will be writing to certain taxpayers who they believe will have to follow the rules of Making Tax Digital for Income Tax (sometimes referred to as MTD) from April 2026. The letters are due to be sent out this month to around 180,000 taxpayers.
Making Tax Digital is a new system for recording and reporting your income and expenses to HMRC using compatible software. It applies to some individuals who are self-employed and/or receive rental income. Taxpayers who received gross income (that is, before any expenses are deducted) from self-employment and/or rental income of over £50,000 in the 2024/25 tax year will be required to meet the requirements of Making Tax Digital from April 2026. For more information about Making Tax Digital, visit our new Making Tax Digital information hub.
Who will receive a letter?
HMRC will be sending out letters in February to taxpayers who:
- submitted their 2024/25 self assessment tax return by the end of November 2025, and
- reported gross income from self-employment, rental income or a combination of the two of more than £50,000.
HMRC have already written to some taxpayers who filed their 2024/25 tax returns before 1 August 2025. We understand that a further batch of letters will be sent out in March to affected taxpayers who filed their returns in December 2025 and January 2026.
It’s important to note that you should still get prepared if you think Making Tax Digital will apply to you from April 2026, even if you haven’t received a letter from HMRC. It remains your responsibility to check whether Making Tax Digital will apply to you and make sure you are prepared to follow the requirements, if you are not exempt (see below for more information on exemptions).
What do I need to do?
If you have received one of these letters, you should start taking steps to get ready for Making Tax Digital. This may include:
- Checking whether you qualify for an exemption, and applying if necessary. Some taxpayers are exempt automatically, either permanently or temporarily, while others must apply for an exemption.
- Investigating suitable software options.
- Signing up for Making Tax Digital
- Thinking about whether you may need to get professional help or support.
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