HMRC previously announced that they will automatically sign up taxpayers who are required to use Making Tax Digital (MTD) for Income Tax from 2026-27, but who have not yet registered themselves. Guidance has now been published setting out the steps affected individuals should take.
Sole traders and landlords earning more than £50,000 have been required to keep digital records and send quarterly updates to HMRC via Making Tax Digital (MTD) since April 2026.
HMRC confirmed in their 9 August Press release that, from September 2026, they will sign up taxpayers who are required to use MTD for Income Tax for 2026-27, but who have not yet registered for the service themselves.
- HMRC will automatically sign up taxpayers if their records show qualifying income exceeded £50,000 in 2024-25 and they have not yet registered.
- Taxpayers whose qualifying income means that they are required to join MTD for 2027-28 or 2028-29 are still expected to sign up themselves or use an agent.
- Only taxpayers who were mandated to use MTD for 2026-27 will be automatically signed up by HMRC.
What happens when HMRC automatically signs up a taxpayer?
HMRC have issued the following guidance on the steps to be taken. Once HMRC have signed up a taxpayer, they will contact them directly, either by post or digitally depending on their contact preferences, asking them to complete a ‘checking step’.
- The taxpayer or agent will need to complete a ‘checking step’.
- This can be carried out in the ‘Making Tax Digital for Income Tax’ section of the relevant HMRC online services account.
- For taxpayers, this will be their Personal Tax Account or Business Tax Account.
- For agents, this will be the Agent Services Account.
- If the taxpayer has never used an HMRC online services account, they will need to set up an account.
- This can be carried out in the ‘Making Tax Digital for Income Tax’ section of the relevant HMRC online services account.
- The ‘checking step’ will require the taxpayer or agent to verify HMRC’s information on active businesses and property income, and to notify HMRC of any changes.
- HMRC’s information comes from historical data for 2024-25. This means it is possible that HMRC could include details for businesses that have ceased.
- It will not be possible to update the business address, description or name. The taxpayer or agent will need to contact HMRC to do this.
- If all self-employment and property income sources ceased by 5 April 2026, MTD will not be required for 2026-27.
- If income sources ceased after 6 April 2026, quarterly updates will be required up until the quarter covering the date the income ceased.
- The taxpayer or agent will need to use Compatible software to catch up and create digital records from the start of the tax year, sending any overdue quarterly updates as soon as possible (the first quarterly submission was due on 7 August 2026).
- HMRC online service accounts will show any overdue quarterly updates as well as upcoming quarterly deadlines.
- HMRC have confirmed there will be no Penalty points for missing a quarterly update for 2026-27. A final quarterly update will be required before the 2026-27 tax return can be submitted, and penalties will be charged if the tax return is submitted late.
- Once caught up, the taxpayer or agent should continue creating digital records and sending quarterly updates.
- If a taxpayer has been signed up but does not need to use MTD, the taxpayer or agent should contact HMRC.
HMRC have provided the Association of Taxation Technicians (ATT) with these Example screenshots showing the process.
The ATT have reminded agents that even where a new business is reported as part of the 'checking step', this does not mean that the taxpayer will need to file under MTD for 2026-27.
- The trade must first be reported on a tax return under the 'latency period' rules.
- MTD will apply from the tax year following the year in which the first tax return filing deadline falls, if the qualifying income condition is met.
- For example, if a taxpayer starts a new business in July 2026, this will be reported on a 2026-27 tax return by 31 January 2028. The taxpayer will need to start filing under MTD from 6 April 2028, provided the income exceeds the relevant threshold.
- A taxpayer or agent can elect to bring the business into MTD earlier through the relevant personal tax, business tax or agent services account.
How will a taxpayer or agent know if a client has been signed up?
HMRC confirmed that a taxpayer can check whether they are signed up to MTD by logging into their HMRC online services account.
- After logging in, a message will appear confirming the taxpayer is signed up.
- The taxpayer will be asked to complete the ‘checking step’ above if HMRC signed them up.
- If the taxpayer does not see a message, they are not signed up. They should sign up as soon as possible.
HMRC will not write to agents to confirm that they have signed a client up to MTD, and the ATT has confirmed that the only way for an agent to check if a client is registered is to follow the steps below.
- Log into the Agent Services Account
- Scroll down and access the 'Making Tax Digital for Income Tax' section
- Click the link for ‘Manage Self Assessment details for clients that are already signed up’
- Input the client’s UTR.
The next page will depend on whether/how the client has been signed up:
- If HMRC have signed up the client, the agent will be presented with the ‘Manage your Self Assessment Module’ screen where the ‘checking step’ can be carried out.
- If the client has signed themselves up or used an agent, the agent will be taken straight to the client overview screen.
- If the client has not been signed up, the client will not be found.
The ATT have requested that the Agent Services Account should include a list of all registered MTD clients for agents to access. HMRC have confirmed they are looking into this, but it has not yet been actioned.
What do agents need to do
HMRC recommend that agents take the following actions:
- Check that all clients who need to use MTD for 2026-27 are signed up. If there are clients who have not signed up, they should do so now.
- Ensure that MTD for Income Tax has been added to their Agent Services Account, that they have authorisations in place for all clients, and that each client’s UTR is appearing in the MTD section of the account.
- If clients are/have been signed up by HMRC, agents will need to ensure the ‘checking step’ is completed.
The ATT have also made the following additional recommendations:
- Agents should identify clients who they have advised will not need to comply with MTD for 2026-27, but who HMRC may expect to sign up based on their 2024-25 data. For these clients, agents should contact HMRC through the Agent Dedicated Line to update HMRC’s records.
- Where an exemption application has been submitted but HMRC have not yet replied, clients should keep an eye out for communications from HMRC, and agents should periodically check their Agent Services Account to ensure HMRC do not automatically sign them up.
- Exemption applications should be made as soon as possible, although it is possible to apply after being signed up to MTD by HMRC.
HMRC have confirmed there is planned maintenance from 5 pm on Friday 11 September 2026 to 1 pm on Tuesday 15 September, meaning taxpayers and agents will be unable to sign up to MTD during this time.
Useful guides on this topic
MTD: Toolkit for accountants
What is the current timetable for Making Tax Digital (MTD)? When will MTD for Income Tax become mandatory? How will it work? Which clients will be excluded? What planning needs to be undertaken?
Making Tax Digital: Survival guide (for the self-employed & landlords)
The way that some self-employed taxpayers report their business profits to HMRC is set to change under the Making Tax Digital (MTD) for business regime, when it begins to apply to Income Tax reporting.
Making Tax Digital: Planner & Timeline
When does Making Tax Digital (MTD) apply? What does MTD really mean? How will it affect you?
External links
HMRC: Check what to do if HMRC has signed you up for Making Tax Digital for Income Tax - GOV.UK