A taxpayer is within Making tax Digital (MTD) for income tax from April 2026 where their qualifying income for 2024/25 exceeds £50,000. A person’s ‘qualifying income’ is their total combined income (not profit) from any sole trades and property businesses carried on in the year.
Since November 2025, HMRC has been writing to taxpayers it believes will need to use MTD income tax from April 2026 based on the information in the 2024/25 tax return. In this final batch of letters, HMRC is writing to taxpayers who:
- submitted their 2024/25 tax return after 31 January 2026; or
- amended their return for 2024/25 before 6 April 2026 with the result that their qualifying income now exceeds £50,000. HMRC’s guidance explains how amendments to returns are taken into account for MTD income tax.
As with earlier mailings, agents will not receive copies of the letters.
Taxpayer’s responsibilities
Although HMRC is writing to taxpayers it believes are within MTD income tax, 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.
In an earlier article, ICAEW encouraged taxpayers who have yet to sign up to MTD income tax to do so in good time in order to submit their first quarterly update by 7 August 2026. If the taxpayer has an agent, the agent can complete the sign-up process on behalf of the taxpayer.
ICAEW is aware that there have been some taxpayers and agents encountering problems when signing up for MTD income tax because of inconsistencies in taxpayer records. By signing up in advance of the first filing deadline, taxpayers and agents will give themselves more time to deal with any issues that may arise.
MTDtalk
ICAEW Tax Faculty staff are delivering a series of webinars on MTD income tax. Topics covered in the first webinar, which was broadcast on 6 March 2026, included how agents can sign up clients for MTD income tax. The next webinar in the series, covering quarterly updates, will take place on 9 July 2026.
To watch recordings of previous webinars and to register for future webinars, visit MTDtalk 2026 webinar series | ICAEW.
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
Further resources
More support
Making Tax Digital
Find the latest support and practical guidance on MTD and its implementation, including plans to expand the regime to income tax self assessment and corporation tax.
SOFTWARE
MTD for income tax software providers
Explore the software available for Making Tax Digital for income tax, covering: bridging, record keeping and full service options. Use these key resources to help you decide the best MTD income tax software for your clients needs.
Browse providersTechnical support
Webinars on MTD
Expert advice from the Tax Faculty's technical managers on the latest developments in the MTD Regime
Watch now