Got a Making Tax Digital letter from HMRC? What to do next
HMRC has started signing people up for Making Tax Digital for Income Tax without being asked. If you've had a letter or an online message, here is what it means and what to do.
From September 2026, HMRC is automatically signing up sole traders and landlords who should already be using Making Tax Digital (MTD) but haven't signed up themselves. That means people whose qualifying income was over £50,000 in 2024–25. ICAEW estimates this could affect up to around 294,000 people. If you've been contacted, log in to your HMRC online account and check the details are right. If you don't think you should be in MTD, contact HMRC straight away.
Why you got it
MTD for Income Tax started on 6 April 2026 for people with qualifying income over £50,000. HMRC is now signing up the people its records say should already be using it.
- The message comes by letter or online, depending on your HMRC contact preferences.
- If you have an accountant, HMRC won't send them a copy. They can see it in their agent account, but forward it to them anyway.
What 'qualifying income' means
It's your total gross income (turnover, not profit) from self-employment plus UK and overseas property, added together, before expenses or allowances. Our guide Is the MTD threshold based on profit or turnover? goes through it in detail.
- A £35,000 sole-trader business plus £18,000 of rent = £53,000, so you're in.
- A business with £60,000 turnover that made £12,000 profit is in. Profit doesn't matter.
- Wages and pensions don't count.
- Your share of a partnership's profit doesn't count either, because partnerships aren't in MTD yet. Any self-employment or rental income you have outside the partnership still does.
| You must use MTD from | If qualifying income is over | Tested on your income for |
|---|---|---|
| 6 April 2026 | £50,000 | 2024–25 |
| 6 April 2027 | £30,000 | 2025–26 |
| 6 April 2028 | £20,000 | 2026–27 |
What to do now
- Check the details in your HMRC online account: income sources, business names and start dates.
- If it's wrong, contact HMRC by phone or webchat on the Self Assessment helpline. For example, all your self-employment and letting stopped before 6 April 2026, or you qualify for an exemption. HMRC has said not to use the normal online change-of-circumstances route for this. Stopping one source isn't enough if another is still going.
- If it's right, choose MTD-compatible software. HMRC keeps a list on GOV.UK, and bridging software lets you keep using a spreadsheet.
- Put the quarterly deadlines in your calendar: 7 August, 7 November, 7 February and 7 May. Your next one is 7 November 2026.
- Keep digital records of income and expenses as you go, not at the end of the year.
HMRC isn't giving penalty points for late quarterly updates in the 2026/27 tax year. Still treat the dates as real deadlines, because that easement won't last. See MTD penalties: how the points system works.
Can I still use a spreadsheet?
Yes. You can keep your records in a spreadsheet and send your quarterly updates using bridging software. The spreadsheet needs your income and expenses sorted into HMRC's categories, so each quarter's totals are ready to submit.
Sources: GOV.UK, Sign up for Making Tax Digital for Income Tax; ICAS and ICAEW reporting on automatic sign-up (September 2026). Last checked 28 September 2026. This is general information, not tax advice.
General information, not tax or financial advice. Always confirm your own position with HMRC or a qualified adviser. This article was last checked against published gov.uk guidance on 28 September 2026. Rules and figures can change — always confirm your own position with HMRC or a qualified adviser.