HM Revenue & Customs (HMRC) is sending a second round of letters to taxpayers who will be affected by the upcoming Making Tax Digital for Income Tax (MTD for IT) requirements, which come into force on 6 April 2026.
This follows the first wave of mandation letters sent at the end of last year, signalling a ramping up of communications as the deadline approaches. Letters are based on information from your 2024–25 tax return, so receiving one suggests you will need to comply with MTD for IT.
When will the letters arrive?
HMRC will send the second round of letters as follows:
- 2–13 February 2026: Taxpayers who submitted their 2024-25 tax return between 1 September and 30 November 2025
- 16–27 March 2026: Taxpayers who submitted their 2024-25 tax return from 1 December 2025 onwards
Letters sent later will arrive close to the 6 April mandation date, so it is important to check now and be ready for the effective date.
Who needs to comply?
You will need to sign up for MTD for IT if you are a self-employed individual or landlord with annual combined business or property income (not profit) over £50,000 (2024-25).
Your responsibility
- Receiving a letter does not automatically confirm your MTD obligations, and not receiving one does not exempt you;
- You must check if MTD applies and take steps to sign up if required; and
- If you think you should be included in the initial rollout but have not received a letter, do not wait – start preparing now
What the letters explain
The letters outline:
- The need to change how you record and report income and expenses;
- What MTD for IT involves, including digital record-keeping and quarterly updates;
- How to prepare for April 2026, including choosing compatible software and signing up; and
- A reminder that you must still file a standard Self Assessment return for 2025-26
The second round also reflects the Autumn Budget 2025 announcement that no penalties will apply if the first four quarterly updates are submitted late. This soft landing applies only to 2026 starters; 2027 and 2028 joiners will face the full penalty regime.
Next steps
The first priority is signing up for MTD for IT and ensuring you have the right software in place. Once registered, no further action is needed until after 6 April 2026, when you will begin keeping digital records.
You can download our Software Solutions Guide at the bottom of this article to explore your options. Many providers are offering solutions, and some major banks have partnered with software companies to provide free MTD software – for example, NatWest and Mettle business account customers can access FreeAgent at no cost.
Key actions
- Check if you need to sign up – Review your qualifying income to see if MTD for IT applies.
- Choose compatible software – Our guide can help you select the right solution.
- Sign up for MTD for IT – Register with HMRC once your software is ready.
- Get familiar with digital record-keeping and reporting – After signing up, you will need to:
- Keep digital records of your business or property income;
- Submit quarterly updates;
- Annually after the tax year, make any necessary adjustments and complete and submit a final declaration (see below).
The final declaration, where you declare all of your income for the year, calculate your tax and finalise your tax affairs, is similar to the current Self-Assessment tax return. If we prepare your tax return, we will continue to handle this step as usual.
How M+A Partners can help
We know these changes can feel daunting, but we are here to support you every step of the way. Our team can:
- Advise on choosing and setting up MTD-compatible software
- Provide training on using the software effectively
- Assist with submitting quarterly updates and the final declaration
- Ensure you stay compliant with HMRC requirements
We also offer a range of guides and resources to make your transition smoother. Visit our Making Tax Digital for Income Tax page to download guides covering upcoming changes and software options.
If you have questions about MTD for IT, registration, or software, contact your usual M+A Partners’ adviser or get in touch with me using the details below.
Making Tax Digital for Income Tax, Software Solutions Guide 