HMRC is set to write to thousands of landlords, sole traders and self-employed individuals, including estate and letting agents, in the coming weeks as it steps up preparations for Making Tax Digital (MTD) for Income Tax.

The tax authority has confirmed that those earning more than £50,000 – who fall within the first phase of the MTD rollout – will receive letters outlining the new reporting requirements and what they will need to do to comply.

MTD for Income Tax will apply from 6 April 2026 to self-assessment taxpayers with qualifying income over £50,000 from self-employment and/or property. As part of its communications programme, HMRC is issuing awareness letters to those affected.

An estimated nearly 900,000 landlords, sole traders and self-employed individuals, including those working in the property sector, will be required to submit quarterly updates to HMRC under the new rules. The first quarterly submission for the 2026–27 tax year will be due on Friday 7 August 2026.

HMRC will issue letters to taxpayers identified as within scope between 2–13 February and 16–27 March, confirming that they will be required to comply with MTD from the start of the 2026–27 tax year.

The HMRC letter outlines the main changes under Making Tax Digital (MTD) for Income Tax, including what MTD is, when taxpayers must begin using it, and the new requirement to submit quarterly updates to HMRC using digital software. It also explains how MTD differs from the current self-assessment process and what taxpayers need to do to prepare.

MTD will be introduced in stages. While it initially applies to taxpayers with income over £50,000 from April 2026, those earning over £30,000 will be brought into the regime from April 2027, with the threshold reducing further to £20,000 from April 2028.

Despite the move to quarterly reporting, taxpayers will still be required to submit an annual self-assessment tax return. Those joining MTD in its first year will need to file their 2025–26 tax return by the usual deadline of 31 January 2027.