HMRC has commenced the final phase of sending out Making Tax Digital (MTD) mandation letters to self assessment taxpayers. The communications inform recipients that, under current regulations, they must comply with MTD requirements for income tax from April 2026.
These notices are based on information declared in the 2024/25 self assessment tax returns and form part of the broader rollout of digital tax reporting obligations across the UK, designed to increase tax administration efficiency and accuracy.
Overview of Making Tax Digital Notices
The Making Tax Digital initiative represents a significant change in the tax system, requiring many individuals and businesses to use digital tools for tax record keeping and submissions.
The latest batch of MTD mandation letters will be sent to individuals whose 2024/25 tax returns indicate they exceed the relevant income threshold. The aim is to ensure all affected taxpayers are adequately informed and prepared to meet digital reporting requirements set out for the 2026/27 tax year.
Timeline for Mandation Letters
According to the published HMRC schedule, letters will be dispatched in two main groups. Firstly, mailing begins this week to taxpayers who submitted a 2024/25 self assessment return between 1 September 2025 and 30 November 2025. The second group will receive their notifications from mid-March 2026 if their 2024/25 tax return was filed on or after 1 December 2025.
Each batch of letters is expected to be completed within two weeks, although some may not be received until late March or early April. It should be noted that agents acting on behalf of taxpayers will not be sent copies of these letters.
Income Thresholds and Exemptions
To be within scope for MTD for income tax from April 2026, individual taxpayers must have total income from all sole trades and property businesses carried on during the 2024/25 tax year that exceeds £50,000.
Importantly, the threshold is based on total income, not profits. Exemptions are available and may apply automatically in some cases or must be formally requested in others, according to official government guidance. Common grounds for exemption include age, disability, or geographical remoteness affecting digital access.
Taxpayer Responsibilities Under MTD
While HMRC is taking steps to inform eligible individuals, the obligation remains with each taxpayer to determine whether they fall within the MTD regime and to sign up if required. Taxpayers who believe they should comply but do not receive a letter are still expected to register for MTD for income tax.
Official guidance on registration is available through the government’s website for both taxpayers and appointed agents. Failure to comply with these responsibilities may result in non-compliance with income tax regulations, although recent policy developments have clarified certain penalty relaxations.
Policy Updates and Changes
The current batch of letters follows an earlier wave of notifications in November 2025, which targeted those who submitted 2024/25 returns by the end of August 2025. Since then, the template letter has been updated to reflect announcements from the Autumn Budget 2025, which stated that no penalties will be imposed if any of the first four quarterly updates are submitted late during the initial reporting period.
This approach is intended to encourage compliance while easing the transition for new entrants into the MTD system.
