HMRC plans automatic MTD sign-up from September

HMRC says it will start signing up sole traders and landlords for Making Tax Digital for Income Tax from September 2026GOV where they must use it for 2026–27 but have not registeredGOV. The staged exercise covers people whose HMRC records show qualifying income above £50,000 in 2024–25GOV. HMRC will contact them after sign-up. Confirmation letters may arrive in HMRC online services or by post, depending on the taxpayer’s circumstances.

The mandate applies from 6 April 2026 to those within scope who are not exemptGOV. Automatic sign-up uses information HMRC already holds, which may omit changes since the last return. Before using MTD, taxpayers need to access HMRC online services and select Making Tax Digital for Income Tax. They will be asked to check the records HMRC holds about their self-employment or property income.

They must confirm existing income sources, add new ones and report those that have ceased. UK properties are treated as one UK property business and foreign properties as one foreign property business. Changes to a business name, address or description must be raised with Self Assessment general enquiries; agents should use the agent dedicated helpline.

HMRC’s instructions distinguish cessation dates. If all self-employment and property sources ceased by 5 April 2026, the person does not need to use MTD for 2026–27GOV. Where all sources ceased after 6 April 2026, HMRC says a final quarterly update through compatible software and the 2026–27 return are still required, before leaving MTDGOV. Anyone signed up who thinks they do not need MTD should contact Self Assessment general enquiries. HMRC says people who think they are digitally excluded can apply for an exemptionGOV.

Those continuing must obtain compatible software covering their income sources and chosen accounting period, authorise it, and catch up on digital records from the start of the tax year. Overdue quarterly updates should be sent as soon as possible. HMRC will not apply penalty points for missed quarterly deadlines in 2026–27GOV, but digital records and the final quarterly update remain necessary before filing the return; points still apply for a missed return deadline.

Agents should check whether clients have received confirmation, then use their agent services account to verify authorisations, the client’s UTR and the addition of MTD. They must search and confirm records separately for each client. A sign-up message in the online service confirms registration; without it, the taxpayer or agent can still register. The sign-up pages warn that planned maintenance prevents registration from 5pm on 11 September to 1pm on 15 September 2026.

The underlying digital obligations are set out in the Income Tax (Digital Obligations) Regulations 2026, including regulations 5–9, 14–15, 18–22 and 25–27.