This month HMRC is continuing with preparations for Making Tax Digital (MTD) for income tax by issuing the first batch of mandation letters based on 2024/25 self-assessment (SA) returns which have already been filed. The template of the letter is available here. Disappointingly, agents will not receive a copy of the letter sent to their client hence it is important that agents take steps to identify anyone who will be receiving a letter this month and make contact with them as soon as possible (the letter does prompt the taxpayer to share this with their agent). HMRC has also published an update on its MTD for income tax trial and we have been asked to remind you about HMRC’s agent outreach campaign for MTD.
Mandation letters
Sole traders and landlords who had already filed their 2024/25 SA return by the end of August 2025 are the first to receive a mandation letter from HMRC that they must comply with MTD for income tax from 6 April 2026. This is on the basis that their 2024/25 SA return included gross income from sole trade self-employment and property of more than £50,000. A further batch of mandation letters for anyone meeting these criteria but not filing their 2024/25 SA return until after 31 August 2025 but on or before 31 January 2026 will not be sent until February and March 2026.
Although HMRC will be sending out mandation letters, HMRC is reminding taxpayers that it is their responsibility to:
- check if they are required to comply with MTD income tax from April 2026; and
- sign up for MTD income tax.
As sign up is not automatic, if a taxpayer believes they are mandated but they do not receive a mandation letter, they should still sign up. HMRC has published guidance for taxpayers and for agents on how to sign up.
We expect that towards the end of November 2025, HMRC will also send a letter to all unrepresented taxpayers who have not yet filed their 2024/25 SA tax return to remind them of the April 2026 start date for MTD income tax. These are not mandation letters but are prompt letters which are being sent on the basis of the 2023/24 SA return if this shows gross income exceeding £50,000.
Trial update
On the MTD trial front, the MTD testing update bulletin sets out progress made to date, provides answers to frequently asked questions and encourages participants in the trial to give their views by completing a survey.
According to HMRC, almost 2,100 successful quarter one submissions for 2025/26 have been made. A reminder was also issued to participants about the second cumulative quarterly update which were due for filing by 6 November 2025.
Agent outreach campaign reminder
HMRC has also asked us to remind you about the agent outreach campaign which we told you about in Chartered Accountants Tax News on 1 September. Agents can check the authenticity of this service here: Check if an email you've received from HMRC is genuine.
Testing by HMRC indicates that completing the agent outreach form takes circa 2 minutes. When completing the form, agents are asked to:
- Give permission to be contacted by HMRC by email,
- Indicate how many clients they have for testing and mandation sign ups, and
- Express an interest in a one to one conversation with HMRC about MTD readiness and testing.
To access the form, agents should sign in with the Government Gateway ID and password linked to their Agent Services Account (ASA). Note that if an agent does not yet have an ASA, they can still complete the expression of interest form by signing in with their Government Gateway ID and the password associated with their existing HMRC online services for agents account (agents will need to manually provide contact details when using this method).
LOADING...