HM Revenue & Customs (HMRC) has begun contacting selected taxpayers to outline the steps they need to take ahead of the upcoming Making Tax Digital (MTD) changes, which come into effect next April 2026.
What Is Making Tax Digital?
Making Tax Digital for Income Tax is HMRC’s new system for how sole traders and landlords must maintain and submit their business and tax information.
Under MTD, you’ll be required to:
- Keep digital accounting records using approved software
- Send quarterly updates to HMRC through that software
From 6 April 2026, MTD will become compulsory for most sole traders and landlords with gross income over £50,000in the 2024/25 tax year.
Why Have You Received a Letter?
If you have already submitted your 2024/25 tax return and your combined gross income from self-employment and/or property exceeds £50,000, HMRC may have written to you to explain your upcoming obligations.
Even if you haven’t received a letter, you must still comply with MTD rules from next April if your income meets this threshold.
What Should You Do Next?
A small number of taxpayers may qualify for an exemption. For example, if it’s genuinely not reasonable for you to use digital software due to disability, location, or other circumstances, you can apply for exemption, and HMRC will review your case.
If you are not exempt, you will need to:
- Select MTD-compatible software
If you already use accounting software, check with your provider that it is fully MTD-ready. - Register for Making Tax Digital for Income Tax
Sign up via GOV.UK to ensure you’re set up in time.
If you need support—whether that’s choosing software, registering for MTD, or managing the quarterly submissions—we’re here to help. We offer everything from simple guidance to a complete MTD solution, giving you full peace of mind.
e: office@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team atLondon Accountants
