If HMRC has emailed, texted or written to you about Making Tax Digital for Income Tax, it does not necessarily mean anything is wrong. HMRC is contacting people as MTD is introduced in stages. This guide explains how to check the message is genuine and what to do next.
Independent guide from MTD Together • Not HMRC • Always check GOV.UK for the definitive rules
Be cautious with unexpected emails, texts or letters. Scammers often pretend to be HMRC, especially around tax changes like MTD.
Do not provide passwords, bank details, or other sensitive information through links in unexpected messages. HMRC will not ask for these by email or text.
If you're unsure, use the official GOV.UK guidance to identify genuine HMRC contact and report anything suspicious.
Making Tax Digital for Income Tax is being introduced in phases. HMRC is writing to people to let them know when they are expected to start using it.
Over £50,000
From 6 April 2026
If your qualifying income is over £50,000, HMRC expects you to use Making Tax Digital for Income Tax from 6 April 2026.
Over £30,000
From 6 April 2027
If your qualifying income is over £30,000, your MTD start date is likely to be 6 April 2027.
Over £20,000
From 6 April 2028
The government has announced that qualifying income over £20,000 will be included from 6 April 2028.
What counts as qualifying income? Broadly, it's your gross income from self-employment and property before expenses. If you have more than one qualifying source — for example, you're a sole trader and a landlord — the amounts may need to be added together when working out your threshold.
For a fuller explanation, read our guides on whether you need MTD and the £30,000 threshold for sole traders.
If HMRC believes you fall into the group required to use MTD from April 2026, it's best to act promptly. For the 2026/27 tax year, HMRC will not apply penalty points for late quarterly updates, although quarterly updates still need to be sent before the tax return can be submitted. Penalty points for late quarterly updates apply in later tax years under HMRC's penalty rules. See the current GOV.UK MTD penalties guidance for the full details.
Use HMRC's online guidance to confirm whether your income and circumstances put you in scope for the start date HMRC has mentioned.
Work out your gross income from self-employment and/or property before expenses. This is the figure HMRC uses for the threshold, not your taxable profit.
If HMRC says you should already be using MTD, check your HMRC account and sign-up status through official GOV.UK channels.
Pick MTD-compatible record-keeping software, or bridging software if you want to keep using spreadsheets.
Start recording income and expenses digitally so you're ready to send quarterly updates when your MTD period begins.
Every three months you'll send HMRC a short digital summary of your income and expenses. These are updates, not extra tax returns.
This is a chance to prepare, not a reason to panic. If your start date is April 2027 or April 2028, you have time to get everything ready without a last-minute rush.
Work out your qualifying income now. Check your most recent Self Assessment tax return and confirm whether your gross self-employment and/or property income is likely to be above the relevant threshold.
Start thinking about software. Compare MTD-compatible record-keeping products, including free and low-cost options. If you already use accounting software, check whether it supports MTD for Income Tax.
Move your records digital gradually. You don't need to change everything overnight. Begin entering new income and expenses digitally, and plan how you'll handle older records.
Individual circumstances vary. If you believe MTD does not apply to you, check your qualifying income and circumstances against the official GOV.UK guidance first.
Common reasons HMRC's letter might not match your own view include: income that is not qualifying income, a recent change in your circumstances, or income that falls in a different tax year.
If, after checking the guidance, you still believe HMRC has contacted you in error, contact HMRC directly. Keep a note of the date, the reference on the letter or email, and what you discuss.
MTD Together cannot resolve disputes with HMRC or tell you definitively whether HMRC's view is correct. For that, you need HMRC or a suitably qualified professional.
Making Tax Digital changes how you keep and send records. It does not mean filing four full tax returns a year.
Record your business income and expenses digitally. You can continue using spreadsheets, but you'll need compatible software — often called bridging software — that links to the spreadsheet to meet MTD submission requirements.
Every three months you'll send HMRC a short summary of your income and expenses through your software.
After the tax year ends, you complete and submit the required tax return information through your software by 31 January.
Important: Quarterly updates are short summaries of your income and expenses, not additional tax returns. You still complete and submit your tax return information after the tax year ends, using the same compatible software.
HMRC is contacting sole traders and landlords as Making Tax Digital for Income Tax is introduced in stages. The letter or email is usually to tell you when MTD is expected to apply to you, based on your qualifying income. It does not mean you have done anything wrong.
No. These communications are part of HMRC's rollout of MTD for Income Tax. They are informational, not accusations. If HMRC believed there was a specific problem with your tax affairs, the wording and channel would be different.
Start with HMRC's 'find out if and when you need to use MTD' guidance on GOV.UK. Compare your gross qualifying income from self-employment and/or property against the thresholds for your start date. If your circumstances are unusual, contact HMRC directly.
If HMRC says you should already be using MTD, sign up through the official GOV.UK service as soon as you can. If your start date is in the future, you have time to prepare — choose software, move your records digital, and understand the quarterly-update process before it begins.
Check your qualifying income and circumstances against the official GOV.UK guidance first. If you still believe HMRC has the wrong information, contact HMRC directly to discuss your position. Do not ignore the message, but don't panic either.
Be cautious with unexpected messages. HMRC will never ask for passwords, bank details or sensitive information through a link in an email or text. Use GOV.UK's guidance on identifying HMRC-related scams, and report anything suspicious through the official channels.
Not necessarily. There is no legal requirement to use an accountant for MTD. Many people keep their own digital records and submit their own quarterly updates and tax return. An accountant can help if your affairs are complex, but it is optional. MTD Together helps with the digital setup; we don't give tax advice.
MTD Together can help you understand the practical setup steps and get your digital records ready. Book a free 15-minute readiness call, and if you'd like hands-on help, our £99 one-to-one Digital Setup Session gets your chosen software set up with you.
Independent support service • Not HMRC • No obligation