HMRC may sign you up for MTDIT

If you are a sole trader or landlord who should have joined Making Tax Digital for Income Tax in April but did not sign up, HMRC may now be doing it for you.

From September 2026, HMRC began automatically signing up people whose records show qualifying self-employment and property income of more than £50,000 in 2024/25 and who should therefore be using Making Tax Digital for Income Tax for 2026/27.

The process is being carried out in stages and HMRC will contact taxpayers after they have been signed up.

However, being automatically signed up does not mean that HMRC has taken care of everything.

What should you do?

If HMRC tells you that you have been signed up, the first step is to check the information HMRC holds about your self-employment and property income.

This is important because HMRC is using information already held from tax returns. If your circumstances have subsequently changed, the information used to enrol you may no longer be correct.

For example, a business or property income source may have ceased. HMRC has specific procedures for dealing with income sources that ended before or after 6 April 2026.

If you believe you should not be within Making Tax Digital, do not simply ignore HMRC's communication. Check the position and, where necessary, contact HMRC or speak to us. Exemptions are also available in certain circumstances, including where someone is digitally excluded.

You still need software

Automatic enrolment does not remove the practical requirements of Making Tax Digital.

You need compatible software to maintain digital records of your self-employment and property income and expenses and submit quarterly updates to HMRC. HMRC does not provide the software.

If you have been signed up late, you may therefore need to bring your digital records up to date from the beginning of the tax year.

You should also submit any overdue quarterly update as soon as possible.

There is some breathing space during this first year. HMRC will not issue penalty points for late quarterly updates for 2026/27, although the updates still have to be submitted before you can complete your tax return. The normal penalties for a late tax return continue to apply.

Another deadline is approaching

The first quarterly update deadline was 7 August 2026. The second is 7 November 2026.

Anyone who has recently been automatically enrolled therefore has a good reason to deal with the position now rather than waiting until the next deadline approaches.

If HMRC has contacted you about automatic enrolment, or you think you should have been within Making Tax Digital from April but have not yet signed up, please contact us. We can check whether MTD applies to you, review the information HMRC holds and help you bring your digital records and quarterly reporting up to date.

If you feel this alert could help a business colleague or family member, please feel free to share it with them.