MTD - Is HMRC Contacting Companies/SE That Have to Use It...

[Paul Kelly ICHYB]

...or not?

I have not had any specific communication from HMRC that I need to be MTD compliant - should I have?

The only guidance I can find on compulsory use is:

• If SE and turnover is above £50k (£30k next April)
• VAT-registered companies

Am I, and probably many others, missing something?

 

[MyAccountantOnline]

...or not?

I have not had any specific communication from HMRC that I need to be MTD compliant - should I have?

The only guidance I can find on compulsory use is:

• If SE and turnover is above £50k (£30k next April)
• VAT-registered companies

Am I, and probably many others, missing something?

In April last year HMRC wrote to what they like to call customers whose 2023-24 tax returns showed income around £50,000. I've not seen any further letters sent.

 

[DWS]

...or not?

I have not had any specific communication from HMRC that I need to be MTD compliant - should I have?

The only guidance I can find on compulsory use is:

• If SE and turnover is above £50k (£30k next April)
• VAT-registered companies

Am I, and probably many others, missing something?

So far I have received copies of letters from 2 clients that HMRC sent them to say they must start reporting under MTD, they were dated Nov 2025
As an accountant I have also received letters telling me that some of my clients may need to report under MTD but not specifically which ones.
So there are or were letters being sent out.
I suppose HMRC expect Accountants to do their work again by informing our clients about MTD and the rules and submission dates!

 

[DWS]

In April last year HMRC wrote to what they like to call customers whose 2023-24 tax returns showed income around £50,000. I've not seen any further letters sent.

It is based on the 2024/2025 tax year is it not?
If your turnover is above the £50k for 2024/2025 then you need to start reporting using MTD after April 2026 was my thinking on this.

 

[Paul Kelly ICHYB]

So far I have received copies of letters from 2 clients that HMRC sent them to say they must start reporting under MTD, they were dated Nov 2025

Were they VAT registered?

As an accountant I have also received letters telling me that some of my clients may need to report under MTD but not specifically which ones.

That sounds like a spray & pray letter!

 

[Paul Kelly ICHYB]

If your turnover is above the £50k for 2024/2025 then you need to start reporting using MTD after April 2026 was my thinking on this.

The way I read that is it only applies to SE. Non VAT registered companies need not use it?

 

[DWS]

The way I read that is it only applies to SE. Non VAT registered companies need not use it?

Yes it only applies to self employed and landlords over the £50k threshold during 2024/2025
That is turnover not profit

 

[MyAccountantOnline]

The way I read that is it only applies to SE. Non VAT registered companies need not use it?

MTD for Income Tax (not MTD for VAT) doesn't apply to limited companies.

 

[Paul Kelly ICHYB]

Wow! Just heard an ad on the radio - Self employed and landlords with £50k+ turnover.....

 

[MyAccountantOnline]

It is based on the 2024/2025 tax year is it not?
If your turnover is above the £50k for 2024/2025 then you need to start reporting using MTD after April 2026 was my thinking on this.

Yes it is but I understand HMRC used 2023-24 SATR's to see which tax payers (cant call them customers ) had income close to the £50k threshold.

Issue 128 of Agent Update

www.gov.uk

 

[UK Contractor Accountant]

Have ignored looking at MTD for Income Tax until all the problems had been sorted out but have just seen this:

Once you start using the service and your qualifying income drops below the relevant threshold for 3 tax years in a row, you can choose to opt out.

What the hell does that mean? so if you ceased self employment and only have £8K rental income each year you will still need to do quarterly returns for the next 3 years?

 

[JEREMY HAWKE]

I spoke to a sole trader business this week with 10 employees and he had no idea about it

I would guess that many people dont know and this will become apparent soon

 

[MyAccountantOnline]

I've just read on the ICAEW website that HMRC are sending this 'customer awareness' letter out in February and March -

https://www.icaew.com/-/media/corporate/files/insights/tax-news/2026/february-2026/mtd-customer-awareness-letters---feb-and-mar-2026.ashx