HMRC to automatically sign up taxpayers for MTD

From this September, HMRC is to start signing up taxpayers who need to use Making Tax Digital for the 2026/27 tax year.

Who is Affected by Making Tax Digital?

MTD for Income Tax Self-Assessment (ITSA) came into effect from the 6th of April 2026 and will follow a phased rollout, becoming mandatory for individuals once they reach the earnings threshold.

So, if you are a sole trader or a landlord, you will be affected from:

• 6th April 2026, if you have an annual business or property income of more than £50,000
• April 2027, if you have an annual business or property income of more than £30,000
• April 2028, if you have an annual business or property income of more than £20,000

Making Tax Digital Responsibilities

• Keep digital records of your income and expenses using HMRC-compatible software.
• Submit quarterly updates to HMRC on: 7th August, 7th November, 7th February and 7th May. These will give you an estimated tax bill as you go, which can be corrected later if needed and do not trigger payments.
• Complete a final end-of-year declaration – you’ll do this after your fourth quarterly update. This replaces the traditional self assessment return and is where everything is checked, corrected and finalised.

You can read about MTD in more detail by visiting our What Do I Need to Know About Making Tax Digital? page.

Manually Signing Up Taxpayers Shows Scheme Isn’t Optional

Responding to the news of HMRC manually signing up taxpayers, the Association of Taxation Technicians (ATT) has concerns.

The ATT says that while this will help to ensure everyone affected is registered for the scheme, taxpayers may find it easier to navigate the system if they sign up themselves ahead of time.

Emma Rawson, Director of Public Policy for the Association of Taxation Technicians, explained, “HMRC’s decision to begin signing up taxpayers who should already be in Making Tax Digital (MTD) sends a clear message that MTD is not optional.

“But those who are signed up by HMRC should not assume that everything has been taken care of for them. It is important to check that HMRC’s records are accurate, particularly where businesses have ceased, circumstances have changed, or an exemption may apply.

“Anyone who believes they are within scope of MTD but has not yet signed up should consider taking action now rather than waiting to hear from HMRC.

“Registering directly, or through an agent, gives taxpayers greater control over the process and more time to ensure they have the right software, digital records and systems in place before their MTD obligations come fully into effect.”

For more information, don’t hesitate to get in touch with Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.