HMRC's final MTD nudge letters: what self-assessment taxpayers should do now

CREATED BY ROGER EDDOWES Published: 19/02/2026 @ 09:00AM #NudgLetters #MTD #MakingTaxDigital #SelfAssessment #HMRC #IncomeTax

HMRC is issuing MTD nudge letters based on 2024/25 returns, and some may arrive in late March. If your income tops £50,000, action may be needed even without a letter. If you receive one, read it, confirm your status, then sign up early ...

MTD nudge letters, Guiding us towards success, Gentle reminders

Many self-assessment taxpayers will soon notice Making Tax Digital nudge letters arriving from HMRC, and the timing is deliberate rather than random. The trigger is what was reported on your 2024/25 tax return, with the focus on whether the taxpayer's total income from sole trade and/or property activity crosses the £50,000 threshold.

The sending pattern matters because it explains why
some people will hear sooner than others!

If you filed between early September and the end of November 2025, then you're first in line, while those who filed from December 2025 onwards are queued for letters from mid-March 2026. Each wave takes about a fortnight to complete, so some individuals might have to wait until late March or early April to see anything land on the doormat.

The underlying test is straightforward in principle!

HMRC is looking at your total income, not profits, from relevant business sources in 2024/25. If that exceeds £50,000 and no exemption applies, the expectation is that you will follow the Making Tax Digital rules for income tax from April 2026. The nuances are in the exemptions, because some are automatic while others require an application; that difference can change the practical next steps.

Even though HMRC letters are being issued, you must still check whether you fall within scope and, if you do, take steps to sign up in time. In other words, MTD nudge letters are helpful signals, but they are not the mechanism that creates the obligation.

If you suspect you are in scope, but have not received anything, waiting is the least efficient strategy. A missing letter does not reduce the requirement to move onto Making Tax Digital, and HMRC's published sign-up guidance exists precisely for that scenario. From a risk-management perspective, early action also leaves space to resolve access issues, software choices, or exemption queries without a last-minute scramble.

There is, however, one reassuring detail for anyone
worried about the first year of change!

HMRC has suggested that there will be no penalties if any of the first four quarterly updates are submitted late, but this position could easily change. That does not eliminate the need for good tax compliance, but it does make the transition potentially less punitive while processes settle.

The practical takeaway is simple: treat the arrival of MTD nudge letters as a prompt to verify your 2024/25 income position, confirm whether an exemption applies, and plan sign-up rather than merely file the letter away. If it never arrives, act on the underlying facts, because the scope test does not depend on the envelope.

And if it does arrive, HMRC's final MTD nudge letters should be seen as the moment to get ahead of April 2026 rather than chasing it.

Until next time ...

ROGER EDDOWES
Join our mailing list! Click here and be one of the first to know when we publish a new blog post!

Share the blog love ...

Buffer Facebook Twitter Linkedin Pinterest WhatsApp #NudgLetters #MTD #MakingTaxDigital #SelfAssessment #HMRC #IncomeTax

About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach. Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

More blog posts for you to enjoy ...
		Is the State Pension triple lock sustainable for the long term? The state pension triple lock has played an important role in protecting pensioners from falling behind as wages and prices rise. For many people, particularly those with little other retirement income, that protection matter...
		Cybersecurity risks for businesses: Why basic protection matters more than ever Cybersecurity risks for businesses continue to evolve, and recent incidents show that it is no longer enough to think of cybersecurity as something that concerns only large organisations or technology companies. The ways a bu...
		UK business growth needs certainty, not just good intentions There has been plenty of discussion about UK business growth recently, and the Chancellor has now given us some indication of the direction the Government intends to take in the October Budget ......
		Why the cost of doing business is holding back growth Growth is talked about constantly, but I think we sometimes overlook something rather obvious. Businesses need the confidence and financial headroom to invest before meaningful growth can happen. Right now, the cost of doing ...
		The soft skills employers look for are becoming more important Qualifications and technical experience will always matter when businesses recruit new people. However, recent research highlighted by the BBC suggests that the soft skills employers seek are becoming increasingly important t...
		Five practical ways to boost UK economic growth There is no shortage of political discussion about UK economic growth, but the more important question is what must change to achieve it. Governments can publish strategies and promise reform, but sustainable growth depends o...
		Companies House accounts filing changes: Why 2028 is closer than you think The Companies House accounts filing changes coming into force from April 2028 may sound comfortably distant, but I think businesses would be wise to start understanding them now. The reforms will change both how company accou...
		Practical mental health tips for business leaders Running a business can be rewarding, but it can also put considerable pressure on the person in charge. These mental health tips for business leaders can help owners and managers protect their well-being while continuing to m...

Other bloggers you may like ...
		Why YourPING is more than just another app Posted by Steffi Lewis on https://www.yourping.uk It would be easy to describe YourPING as an app, but that doesn't really explain what we're trying to achieve. The technology is simply the mechanism ...
		Accommodation for business travellers in Milton Keynes Posted by Emily Freeman on https://blog.shortstay-mk.co.uk Finding the right accommodation for business travellers in Milton Keynes isn't just a matter of comparing nightly rates. When you're visiting for a fe ...
		Are you feeling unfulfilled at work? It may be time for a change Posted by Dave Cordle on https://blog.davecordle.co.uk Sometimes there isn't anything obviously wrong with your job. You turn up, do what is expected of you, get paid and repeat the process the following w ...
		What is a daily reassurance check in and how does it work? Posted by Steffi Lewis on https://www.yourping.uk A daily reassurance check-in is a simple way to let someone know you are OK. At an agreed time each day, you receive a check-in and respond to confirm ...