Making Tax Digital: HMRC to Automatically Sign Up Some Taxpayers from September 2026
Published 20th August 2026
HMRC has confirmed that from September 2026 it will begin auto-enrolling people who should’ve signed up for the Making Tax Digital (MTD) scheme in April but haven’t yet.
The announcement follows the first wave of MTD for Income Tax, which began in April 2026 for sole traders and landlords with qualifying income above £50,000. HMRC says hundreds of thousands of taxpayers have already registered, but a significant number still need to do so.
Where Things Stand
Around 864,000 sole traders and landlords were expected in this first wave. HMRC has reported that more than 570,000 have now signed up, and more than 436,000 filed a quarterly update by 7 August.
Rather than waiting for the remaining taxpayers to register, HMRC will now begin signing them up automatically from September. Anyone being signed up this way will receive a letter or digital message explaining what it means and what to do next. Further HMRC guidance is expected before the end of August.
Automatic registration doesn’t create any new obligations beyond those that already existed. It simply means HMRC will register people it who it thinks are liable but who haven’t signed up themselves, yet.
If you missed the 7 August deadline, or you’re still not sure whether MTD applies to you, our earlier guide covers the basics: Making Tax Digital: The 7 August Deadline, and What to Do This Week.
Who This Affects
This only applies to people who should’ve joined MTD in April 2026, meaning those with combined gross self-employment and property income of more than £50,000 in the 2024 to 2025 tax year.
If your start date is April 2027 (£30,000 threshold) or April 2028 (£20,000 threshold), nothing changes for you. when your turn comes, you’re still expected to sign yourself up, or ask your accountant to do it for you.
Being Signed Up for MTD, Isn’t the Same as Being Ready for MTD
Once you’re signed up for MTD you still need to choose software from HMRC’s recognised list on GOV.UK. Connect that software to your Government Gateway account. Maintain digital records dating back to 6 April 2026 and file your quarterly updates
Nothing beyond the sign-up itself is done by HMRC.
Check HMRC Has the Right Information
HMRC is working from your 2024 to 2025 tax return, so it’s possible its records might be out of date.
If you’ve stopped trading, closed your property business, moved into a limited company, or think you qualify for an exemption, contact HMRC now rather than waiting. Otherwise, you could find yourself subject to quarterly reporting obligations for a business you no longer operate.
It’s Still Better to Sign Up Yourself
There’s no penalty for waiting, but there’s little benefit waiting either.
Signing up for MTD yourself, or through your accountant, means you choose the timing, can check your own details before any filing obligations are created. You should also avoid an unexpected HMRC letter landing on your doormat.
The 2026/27 grace period on penalty points for late quarterly updates still stands. Late filing and late payment penalties on the annual return apply exactly as they always have.
Final Thoughts
HMRC’s decision to begin automatically registering eligible taxpayers is designed to bring more people into the MTD system ahead of future reporting deadlines. However, registration alone is only the first step.
Whether you’ve already signed up or HMRC signs you up automatically, you’ll still need suitable software, accurate digital records and processes in place to meet your ongoing obligations.
Need a Hand?
While Invest Hartlepool cannot provide tax advice, we can help you identify whether this change may affect you and connect you with the right support, including qualified advisers where the question is genuinely a tax question. Get in touch with the Economic Growth Team at Hartlepool Enterprise Centre on 01429 867677.
HMRC runs regular free webinars, publishes full guidance on their website alongside the recognised software list on GOV.UK – https://www.gov.uk/government/collections/making-tax-digital-for-income-tax
This is general information about a UK tax change, correct as of August 2026. It is not tax advice, and Hartlepool Borough Council cannot advise on your individual tax position or act on your behalf with HMRC. Check GOV.UK for the current position and speak to a qualified accountant or tax adviser about your own circumstances.