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First MTD mandation letters to be sent this month

Author: ICAEW Insights

Published: 03 Nov 2025

Sole traders and landlords who filed their 2024/25 self assessment (SA) tax return by the end of August 2025 will be the first to be notified by HMRC that they must comply with Making Tax Digital (MTD) for income tax from April 2026.
Taxpayers will need to comply with MTD income tax from April 2026 where their SA tax return for 2024/25 includes gross income from sole trade self-employment and property of more than £50,000. Taxpayers who are within MTD income tax from April 2026 should receive a notification letter from HMRC informing them that this is the case (a “mandation letter”). 

Taxpayer’s responsibilities

Although HMRC intends to send out mandation letters, it is the taxpayer’s responsibility to:

  • check if they are required to comply with MTD income tax from April 2026; and
  • sign up for MTD income tax.

If a taxpayer believes that they are required to comply but has not received a mandation letter, they should sign up for MTD income tax. HMRC has published guidance for taxpayers and for agents on how to sign up for MTD income tax.

ICAEW’s TAXguide 01/25 includes a tool that can be used to check if a taxpayer is within MTD income tax from April 2026.

The first batch of mandation letters are now being sent to taxpayers who filed their SA tax return for 2024/25 by the end of August 2025. Mandation letters will be sent to taxpayers who file their 2024/25 SA tax returns between September 2025 and January 2026 in February and March 2026. 

Advice for agents

ICAEW’s Tax Faculty is disappointed that HMRC has made the decision not to send copies of the letters to agents. The letter does prompt taxpayers to share the letter with agents, but agents might want to proactively contact their clients that filed their 2024/25 return early that are expected to receive a mandation letter in this first wave. 

Towards the end of November 2025, HMRC will send a letter to unrepresented taxpayers who have not yet filed their 2024/25 SA tax return to remind them of the April 2026 start date for MTD income tax (a “prompt letter”). This prompt is based on 2023/24 tax return information.

The mandation and prompt letters explain what is required under MTD income tax, the criteria for having to use MTD income tax from April 2026 and how to prepare for MTD income tax. The letters contain a QR code which the recipient can scan to access further information.

 

Further information

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