Got a letter from HMRC about Making Tax Digital?

The short answer

HMRC is writing to sole traders and landlords whose tax return shows qualifying income over the Making Tax Digital threshold. Most letters going out now are for people over £30,000, who need to start on 6 April 2027. Don't panic, and don't ignore it: check your figures, choose software, and sign up on GOV.UK before your first quarterly update is due on 7 August 2027.

Why HMRC has written to you

From 6 April 2027, Making Tax Digital for Income Tax applies to sole traders and landlords whose qualifying income was over £30,000 on their 2025⁠–⁠26 tax return. Qualifying income is your self-employment sales plus your rent, before any expenses.

HMRC is sending letters to the people this applies to, in batches from autumn 2026 to early 2027, as 2025⁠–⁠26 returns come in. If you file your return online, you may also see a message about it when you submit. The letter explains what's changing and how to sign up.

Not sure the threshold applies to you? Use our Making Tax Digital checker: it takes about a minute.

If your letter says HMRC has signed you up

This letter is different. It goes to people who should have started Making Tax Digital in April 2026, because their 2024⁠–⁠25 return showed qualifying income over £50,000, but who haven't signed up. HMRC has started signing these people up itself, in stages, from September 2026.

If that's you, HMRC's guidance says to:

sign in to HMRC online services and choose Making Tax Digital for Income Tax
check the details HMRC holds about your self-employment and property income
choose software that works with Making Tax Digital
catch up your digital records from 6 April 2026, and send any overdue quarterly updates as soon as you can

Because quarterly updates are cumulative, one update can bring you up to date: it covers everything from 6 April to the end of the latest quarter. HMRC isn't giving penalty points for late quarterly updates in the 2026⁠–⁠27 tax year.

Is the letter genuine?

HMRC does send letters about Making Tax Digital, but scammers copy HMRC too. A genuine letter won't ask you to pay anything to sign up, and signing up is free on GOV.UK.

Don't use contact details from a message you're unsure about. Go to GOV.UK yourself and sign in to your HMRC account there.
HMRC never tells you about a tax rebate or penalty by email, text or phone call, or asks for your bank details that way.
Report anything suspicious. Forward scam emails to phishing@hmrc.gov.uk and scam texts to 60599.

What to do next

Check your figures. Add up your self-employment sales and your share of any rent from your 2025⁠–⁠26 tax return, before expenses. Over £30,000 means you start on 6 April 2027.
Choose software. HMRC lists software that works with Making Tax Digital on GOV.UK, and some of it is free.
Sign up on GOV.UK, or ask your accountant to do it for you.
Keep digital records from 6 April 2027, and send your first quarterly update by 7 August 2027.
Send your 2026⁠–⁠27 return the usual way, by 31 January 2028. That one hasn't changed.

Our step-by-step guide, How to get ready for Making Tax Digital, goes through each of these.

If you think HMRC has got it wrong

Check how HMRC worked out your qualifying income. Common reasons it might not apply to you:

you counted your wages, pension, savings or dividends, which don't count
you own a property jointly, and only your share of the rent counts
your income comes from a partnership, which isn't included yet
you can't use digital devices because of your age, health or disability, or for religious reasons, in which case you can apply for an exemption

If you've been signed up and don't think you should be, contact HMRC through its Self Assessment general enquiries line. Our guide Does Making Tax Digital apply to me? has the full rules and exemptions.

Sources

This guide explains HMRC's rules in general and isn't tax advice. For your own situation, check GOV.UK or speak to an accountant.