Got a letter from HMRC about Making Tax Digital?
It's real, it's not a scam, and it does apply to you. HMRC has been writing to landlords and sole traders whose 2024/25 tax return showed more than £50,000 of gross income. Here is what it means, in plain English.
Why you got the letter
From 6 April 2026, Making Tax Digital for Income Tax became law for individuals with over £50,000 of combined gross income from property and self-employment. HMRC identified you from your last tax return. The letter is not optional reading — it means you are in the first group required to comply.
What actually changes for you
- You must keep digital records of your income and expenses in software that connects to HMRC — a paper ledger or a plain spreadsheet is no longer enough.
- You must send HMRC a quarterly update for each income stream — the next one is due 7 November 2026 (23 days away).
- A final declaration after year end replaces your Self Assessment return.
- Your tax payment dates do not change — still 31 January and 31 July. The letter changes how you report, not when you pay.
Your three options
- Do it yourself with MTD software (£150–£300 a year plus 30–50 hours of your own time, four deadlines a year to remember).
- Ask an accountant — many are now charging £800–£1,500 a year for MTD work, and plenty of smaller firms are turning new MTD clients away.
- Have it done for you. Zentra Taxkeeps your digital records, files every quarterly update and your final declaration, from £45/month for landlords and £59/month for sole traders. You forward your bank statements — that's the whole job.
First: check exactly where you stand
The letter tells you that you're affected — it doesn't tell you your dates or what your year looks like. The free checker does, in about a minute, and emails you a personal deadline calendar.
Do you receive your rental or business income through a limited company?
Takes about a minute. No jargon, no obligation.
This is general guidance, not tax advice. More questions answered here.