If you complete a Self Assessment tax return, you may soon receive a letter from HMRC about Making Tax Digital (MTD) for Income Tax. From November 2025, HMRC plans to contact taxpayers who filed a 2024–25 tax return, advising them that they will fall within the MTD regime from April 2026.
What the HMRC Letter Is Telling You
The letter will typically:
- Confirm that, based on your reported income, you will need to comply with MTD for Income Tax from April 2026
- Outline the steps you should begin taking to prepare
- Provide a QR code linking to GOV.UK guidance
- Suggest speaking with your accountant for advice and support
In simple terms, HMRC is moving towards a system where people with income outside PAYE must keep digital records and submit updates to HMRC throughout the year, rather than relying solely on one annual tax return.
What You Should Do Next
If you work with Helensburgh Accountants, we’ll contact affected clients during early 2026 with practical guidance on how to prepare. For now, the key points are:
- Don’t worry when the letter arrives. It’s simply an information notice rather than a compliance warning.
- Check how you keep your records. If you still rely on spreadsheets, you’ll likely need to move to MTD-compatible software such as QuickBooks, Xero or FreeAgent.
- Stay informed. As HMRC continues to refine the system, we’ll share updates, short guides and brief explanations to help clients understand what’s changing.
Trying the System Early
HMRC is also offering some taxpayers the opportunity to join the MTD system voluntarily during the 2025–26 tax year. Early adopters receive additional support from HMRC and it allows any issues to be resolved before the mandatory start date.
If any clients would like to take part in the pilot scheme, we can assist with getting them set up.
The Key Point
Making Tax Digital for Income Tax will become a requirement for many taxpayers from April 2026, but with the right preparation the transition should be straightforward. Moving to digital record-keeping now and working closely with your accountant will ensure everything runs smoothly.
If you would like advice on preparing for Making Tax Digital, get in touch with Helensburgh Accountants today.