Issue 03/October 2026 Prepare to be signed up for MTD - What you need to know.
Making Tax Digital: Could HMRC Be About to Sign You Up?
If you're a sole trader or landlord earning more than £50,000, Making Tax Digital (MTD) for Income Tax is no longer something to prepare for, it's already here. Since April 2026, those meeting the income threshold have been required to keep digital records and submit quarterly updates to HMRC using compatible software.
However, HMRC has identified that some taxpayers who should be registered for MTD have yet to sign up. To address this, HMRC has confirmed that it will begin automatically enrolling eligible individuals who have not yet registered themselves.
What Does Automatic Enrolment Mean?
If HMRC believes you should be using MTD for Income Tax, they may sign you up automatically and contact you either by post or digitally, depending on your communication preferences. Once notified, you'll be asked to complete a simple "checking step" through your HMRC online account.
This process allows you to review the information HMRC holds about your business and property income and confirm whether it is accurate. As HMRC's records are based on historical information, there may be occasions where details are out of date, such as businesses that have since ceased trading. It's therefore important to carefully check any information provided and notify HMRC of any discrepancies.
What Happens Next?
Following enrolment, you'll need to ensure that your financial records are maintained digitally using MTD-compatible software. If any quarterly updates are outstanding, these should be submitted as soon as possible so that your records are brought up to date.
Although HMRC has confirmed that no penalty points will be issued for missed quarterly updates during the 2026/27 tax year, businesses and individuals should not become complacent. A final declaration will still need to be completed before your tax return can be submitted, and penalties may apply if filing deadlines are missed.
What If You've Been Signed Up by Mistake?
In some cases, HMRC may enrol taxpayers who are no longer required to use MTD or whose circumstances have changed. If this happens, don't panic. Contacting HMRC should allow the matter to be corrected quickly and prevent unnecessary reporting obligations.
How We Can Help
The transition to Making Tax Digital represents one of the biggest changes to the tax reporting system in recent years. While digital record-keeping and quarterly reporting can seem daunting, the right software and professional support can make the process straightforward.
If you've received an MTD notification, been automatically enrolled, or simply want to ensure you're compliant, our team is here to help. We can assist with software selection, HMRC correspondence, digital record-keeping requirements, and ongoing compliance support, giving you peace of mind that everything is being handled correctly.
If you have any questions about Making Tax Digital, get in touch with A P Robinson & Co today. We're here to help make the transition as smooth as possible.
