HMRC has begun the next phase of preparations for Making Tax Digital (MTD) for Income Tax, and taxpayers are starting to receive letters about what the changes mean for them.
From April 2025, HMRC is writing directly to sole traders and landlords who may be required to comply with MTD from April 2026. These letters will continue to be issued throughout the coming month and are based on information from 2023/24 Self-Assessment tax returns.
If you receive a letter, we encourage you to get in touch with us as soon as possible, whether you are already a client of Hall Morrice or are looking for tax support.
The figures from the 2024/25 tax return will ultimately determine who must comply, but HMRC is making early contact to help taxpayers prepare. If you are a sole trader, a landlord, or both, and meet these income thresholds, MTD will affect how you manage and report your income to HMRC.
If you receive one of these HMRC letters, it is important to seek advice promptly. You will be responsible for signing up for MTD as it will not happen automatically.
Affected taxpayers must:
At Hall Morrice, we are closely monitoring the rollout of Making Tax Digital and supporting clients through this significant change.
If you have received a letter from HMRC or you think MTD may apply to you, please contact our team as soon as possible.
Don’t leave it too late to get ready. At Hall Morrice, our experienced team can provide personalised advice to help you navigate these changes and optimise your tax strategy. Contact Hall Morrice at tax@hall-morrice.co.uk to start planning for a smooth transition.
