From April 2026, landlords and self employed and sole traders with income in excess of £50,000 from earnings, rental income and so forth, will have to report quarterly under MTD for Income Tax.

Now HMRC is starting to send letters out to a selected group of taxpayers to advise them to prepare for the changes.

HMRC estimates that nearly 900,000 taxpayers will be dragged into the first phase of MTD for Income Tax, and has issued a warning to accountants and tax advisers to expect an increase in questions from clients in the next four weeks as the latest letters land.