Making Tax Digital for Income Tax – Onboarding and Quarterly Update Letters

Explain MTD for Income Tax to sole traders and landlords, agree who does what, and keep every quarterly update on time with reminder and chaser letters.

Editable Word document
12
10pages
Guidance notes included
aml consultancy solutions

Accountancy practice – client documents

Making Tax Digital for Income Tax – Onboarding and Quarterly Update Letters

About this document

What it’s for

A plain-English onboarding letter explaining Making Tax Digital for Income Tax (MTD) to clients who must join, with a service choice and authority form, followed by a quarterly update reminder letter, an overdue update chaser and a practice tracker.

When to use it

  • When HMRC confirms (or you calculate) that a client’s qualifying income is over the threshold
  • For clients joining from April 2026 (over £50,000), April 2027 (over £30,000) or April 2028 (over £20,000)
  • Every quarter, two to three weeks before each update is due

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  • What is changing
  • Quarterly update dates
  • What “digital records” means
  • Penalties under the new rules
  • How we will help
  • Fees and software
  • What we need you to do now
  • Your estimated tax so far

How to complete it

  • Choose the start-date option and service option that fit the client
  • Fill in the fees and records deadlines that match your engagement letter
  • Send with your MTD engagement letter or schedule if the scope of work is changing

Key points to check

  • Confirm the client’s qualifying income figure and any exemption before writing
  • Check the 2026/27 penalty easement and current HMRC guidance before each season

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Accountancy practice – client documents

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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