Got an HMRC letter about MTD? Here’s what to do next

If you’re a landlord and have just received a letter from HMRC about Making Tax Digital (MTD), you’re not alone. Thousands of landlords across the UK are receiving these letters right now, as HMRC encourages taxpayers to prepare for the upcoming MTD for Income Tax deadline.

Here’s what the letter means, why you got it, and what to do next.

What is MTD for Income Tax?

Making Tax Digital (MTD) is a government initiative designed to make tax reporting more accurate, efficient and easier for individuals and businesses. MTD for IT applies to landlords and self-employed individuals with qualifying income (not profit) over £50,000 (from April 2026), £30,000 (from April 2027) and £20,000 (from April 2028).

It means you’ll no longer submit a Self Assessment tax return once a year. Instead, you’ll submit five times per year: you’ll send quarterly updates to HMRC and file a Final Declaration using MTD-compatible software solutions.

💡 Pro tip: Learn more about landlord MTD with our guide.

Why did you get this HMRC letter?

HMRC has identified you as a landlord likely to meet the income threshold for MTD for IT. The letter is an early heads-up to help you prepare ahead of time, so you can make a smooth transition when the rules come into effect.

Landlord MTD – What you need to do next

1. Don’t panic – This is just a notice, so you can act early and be prepared ahead of the deadline.
2. Ask your accountant – Accountants and tax advisers in the UK are making plans to help their landlord clients transition to MTD. Contact them on how to prepare for landlord MTD with their assistance.
3. Check your income – If your total property and/or self-employed income is above £50,000, you’ll need to comply with MTD rules starting April 2026.
4. Start looking for MTD-compatible software – HMRC requires you to keep digital records and submit updates through recognised software.
5. Choose software built for landlords – General accounting solutions aren’t always designed for property income. Hammock is the first landlord software recognised by HMRC for MTD for IT.
6. Sign up for a free trial with Hammock – Getting familiar with the software now gives you plenty of time to adjust before the rules become mandatory.

Start preparing for landlord MTD with a 30-day free trial on Hammock – sign up now.