HMRC’s mandation letters, and the new “Right to Try” Legislation comes into force
Have You Received a Letter from HMRC About MTD?
With Making Tax Digital (MTD) for Income Tax coming into force from 6 April 2026, HM Revenue & Customs (HMRC) have been writing to taxpayers over recent weeks to tell them that they are being mandated into the regime.
MTD became mandatory from 6 April 2026 for sole traders and landlords with a total turnover exceeding £50,000 in the 2025/25 tax year, unless an exemption applies. It involves keeping digital records and submitting quarterly updates to HMRC.
Some taxpayers may have only received their ‘mandation’ letter a few days before the tax year started.
If you have received a letter, and that was the first you knew about MTD requirements affecting your business, there is no need to panic.
The first MTD filing deadline will not be until 7 August 2026. So, you have time to sign up, decide which software to use and then begin to keep your accounting records digitally. If your digital records are up-to-date for the three months starting in April 2026 by the time you need to file the update, then there will be no problem meeting the deadline.
HMRC will not charge you a penalty for not signing up by 6 April 2026, but the longer it is left, the more difficult the task of record-keeping becomes.
If you would like help with any aspect of MTD, from signing up to keeping digital records and submitting returns, please get in touch. We would be happy to help you!
New “Right to Try” Legislation Removes a Key Barrier to Work for Disabled People
At the end of April 2026, new legislation will come into force designed to address the fear of losing benefits support if a new job does not work out.
For many disabled people and those with long-term health conditions, the risk of triggering a benefits reassessment can be enough to stop them from even trying employment or volunteering. This leaves people stranded on benefits, despite wanting to work.
New legislation aims to address this problem. From the end of April, starting work will no longer automatically trigger a benefits reassessment for people who receive:
- New-style Employment and Support Allowance.
- Personal Independence Payment.
- The health element of Universal Credit.
The new rules also guarantee that volunteering, which is often a first step back into work, will not trigger a benefits reassessment either.
If you are an employer, the rules may remove a barrier that has previously been filtering out suitable candidates before you have had a chance to meet them.