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Had a letter from HMRC about Making Tax Digital? What to do next

By the Quidtrail team · Facts last checked

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HMRC is writing to sole traders and landlords about Making Tax Digital (MTD) for Income Tax. There's more than one kind of letter. This page explains what each one says, what HMRC asks you to do, and what to do if you think it's wrong.

General information, not tax advice. Check your own situation with HMRC or a qualified accountant.

The quick answer

Check if you need MTD (free, 2 minutes)

Which letter have you got?

"We've signed you up" (from September 2026)

HMRC says that from September 2026, if you needed to use MTD for the 2026 to 2027 tax year and hadn't signed up, it will sign you up, because its records show your qualifying income was over £50,000 in 2024 to 2025. This happens "in stages over the coming months", and HMRC contacts you after it has signed you up. The confirmation may arrive by post or in your HMRC online services, depending on your circumstances (GOV.UK; agent toolkit).

"You'll need to use MTD from 6 April" (the confirmation letter)

HMRC reviews your Self Assessment return and checks your qualifying income each tax year. If it's above the threshold, HMRC writes to confirm that you need to use MTD by the start of the following tax year (GOV.UK). HMRC says it has sent these letters since autumn 2025 to people who need MTD for 2026 to 2027 (agent toolkit).

If your qualifying income is between £30,000 and £50,000, see MTD from April 2027.

Reminders about quarterly update deadlines

HMRC's software developer newsletter (30 September 2026) describes two MTD campaigns in autumn 2026 (GOV.UK):

The newsletter doesn't say which channels the campaigns use.

No letter at all?

HMRC is clear: "If you did not receive a letter, it is still your responsibility to check if and when you need to use Making Tax Digital for Income Tax" (GOV.UK).

Is the letter genuine?

HMRC says these letters come by post or in HMRC online services (GOV.UK). You can check for yourself by signing in to HMRC online services with the details you use for Self Assessment. HMRC says that once you're signed in, a message will appear on screen confirming you're signed up. If you don't see a message, you're not signed up yet (GOV.UK). Once signed up, you select "Making Tax Digital for Income Tax" in your account (GOV.UK).

If HMRC has signed you up: the 5 steps

These are HMRC's steps, in HMRC's order (GOV.UK).

  1. Access HMRC online services. Sign in with your Self Assessment details and select "Making Tax Digital for Income Tax". If you've never used HMRC online services, you'll need to set up an account first.
  2. Check and confirm the records HMRC holds. These are based on your 2024 to 2025 return, and your 2025 to 2026 return if you sent it before HMRC signed you up. Confirm your self-employment and property income. All your UK properties are treated as one "UK property business", and all your foreign properties as one "foreign property business". Add any new income sources and tell HMRC about any that have stopped. See MTD for jointly owned property and MTD and foreign property.
  3. Get compatible software. HMRC doesn't provide software (GOV.UK). It points to its find software tool, which includes free and paid options, and says to check the software works with your accounting period (standard tax year, calendar update periods or neither). Our A to Z of MTD software and free MTD software pages set out what providers publish. If you keep records in spreadsheets, see bridging software.
  4. Catch up. Create digital records from the start of the tax year, then send your overdue quarterly update as soon as possible. Your HMRC online account shows any overdue updates and upcoming deadlines.
  5. Use HMRC's guide. Once you've caught up, keep creating digital records and sending quarterly updates, using HMRC's "Use Making Tax Digital for Income Tax" guidance.

Will I get a penalty for the updates I missed?

Not a penalty point for quarterly updates in 2026 to 2027. HMRC says: "You'll not get penalty points for missing a quarterly update deadline for the 2026 to 2027 tax year." You still need to keep digital records and send your quarterly updates before you can submit your tax return, and penalty points still apply if you miss the tax return deadline (GOV.UK; penalties guidance). HMRC's letter text gives that return deadline as 31 January 2028 (agent toolkit). Late payment penalties also apply. See MTD penalties explained.

Your 2025 to 2026 return still goes in the old way

HMRC's letter says to submit your 2025 to 2026 return "through the existing Self Assessment system by 31 January 2027" (agent toolkit). The current penalties still apply to that return (GOV.UK).

Deadlines from here

Quarterly update deadlines for 2026 to 2027 are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027 (agent toolkit; GOV.UK). See MTD quarterly deadlines.

If you think HMRC has got it wrong

Your income stopped before 6 April 2026

If all your self-employment or property income stopped before 6 April 2026 and you've had a letter saying HMRC has signed you up, update your information in your HMRC online account. HMRC says you won't need to use MTD, but you still need to submit your 2025 to 2026 tax return (GOV.UK).

If HMRC hasn't contacted you yet, HMRC says to contact it and submit your 2025 to 2026 return by 31 January. If you don't tell HMRC first, it will sign you up based on the information it has (GOV.UK).

Your income stopped on or after 6 April 2026

HMRC says you'll still need to use MTD and compatible software to send a quarterly update covering up to the date all your self-employment and property income stopped, and to submit your 2026 to 2027 tax return. You won't need MTD after that (GOV.UK).

If only one source stopped and another continues, the stopped income can still count towards your qualifying income (GOV.UK).

Your income is below the threshold, or you think you're exempt

HMRC says to contact Self Assessment: general enquiries if it has signed you up and you don't think you need to use MTD. You can also check whether you can get an exemption, for example if you're digitally excluded (GOV.UK; exemptions guidance). See MTD exemptions.

Remember that qualifying income is your self-employment and property income before expenses (turnover), not profit (GOV.UK). Wages, pensions and dividends don't count. See MTD qualifying income.

Can I opt out later?

Only once you've been using MTD. HMRC says you can opt out if you amended the previous year's return and that took your qualifying income below the threshold, or if your qualifying income has been below the threshold for 3 consecutive years. The option only appears in your HMRC online services account if you're eligible (GOV.UK).

Check if you need MTD (free, 2 minutes)

If you have an accountant or agent

HMRC doesn't send these letters to agents. Agents can see copies of the letter wording in HMRC's agent toolkit (GOV.UK), so pass your letter on. An agent follows the same steps for you, signing in through their agent services account instead (GOV.UK). See MTD: DIY or accountant?

What happens if you don't sign up?

From September 2026, HMRC will start to sign up anyone who needs to use MTD for the 2026 to 2027 tax year and hasn't signed themselves up (GOV.UK). Being signed up by HMRC doesn't change what you have to do: you still keep digital records, send quarterly updates and submit your return through compatible software. HMRC also notes that when it signs you up, it only uses the information it already holds, which may not reflect recent changes (GOV.UK).

HMRC's guidance describes this for the 2026 to 2027 tax year. It hasn't said whether it will do the same for people who need MTD from April 2027. For signing up yourself, see how to sign up for MTD.

Contacting HMRC

HMRC's Self Assessment: general enquiries page covers queries about signing up for or using MTD for Income Tax. As listed there on 18 October 2026:

Agents should contact HMRC's agent dedicated helpline instead (GOV.UK). For problems with your software, HMRC says to contact your software provider (GOV.UK).

Frequently asked questions

Why has HMRC signed me up for Making Tax Digital?

HMRC says its records show your qualifying income was over £50,000 in 2024 to 2025, so you needed MTD for 2026 to 2027, and you hadn't signed up yourself or through an agent (GOV.UK).

Will I get a penalty for missing quarterly updates I didn't know about?

Not a penalty point for quarterly updates in the 2026 to 2027 tax year. You still have to send them before you can submit your tax return, and points still apply to a late tax return (GOV.UK).

Am I registered for Making Tax Digital? How do I check?

Sign in to HMRC online services with your Self Assessment details. HMRC says a message will appear confirming you're signed up. If there's no message, you're not signed up yet (GOV.UK).

What happens if I don't sign up for Making Tax Digital?

For the 2026 to 2027 tax year, HMRC says that from September 2026 it will sign people up itself, based on the information it holds. Your obligations stay the same (GOV.UK).

I've stopped trading or letting. Do I still need MTD?

If all your self-employment and property income stopped before 6 April 2026, HMRC says you won't need MTD, but you must update your details and file your 2025 to 2026 return. If it stopped on or after 6 April 2026, you send a final quarterly update and your 2026 to 2027 return (GOV.UK).

I haven't had a letter. Do I still need to sign up?

Yes, if your qualifying income is over the threshold. HMRC says "it is still your responsibility to check if and when you need to use Making Tax Digital for Income Tax" (GOV.UK).

Can I opt out of Making Tax Digital?

Only after you've been using it, and only if you meet HMRC's conditions, such as 3 consecutive years below the threshold. The option appears in your online account if you're eligible (GOV.UK).

When will the £30,000 group get letters?

HMRC hasn't published a date. It says it writes after reviewing each Self Assessment return (GOV.UK). See MTD from April 2027.

Sources {#sources}

All checked 18 October 2026.

Related: MTD for landlords · MTD for sole traders · MTD for Income Tax guide

Last checked against GOV.UK on 18 October 2026. Not tax advice.

Sources

Facts last checked: 18 October 2026.

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