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From September 2026, HMRC will begin signing up taxpayers to Making Tax Digital (MTD) for Income Tax where it believes they should already be in the regime but have not registered themselves.
This affects anyone with combined gross income from self-employment and property above £50,000 in 2024/25, unless an exemption applies.
HMRC estimates that up to 294,000 taxpayers could fall into this group, out of an expected first-wave population of around 864,000.
Why signing up yourself is better
It remains possible to sign up voluntarily, or for an agent to sign up a client, right up until HMRC intervenes. Doing so before HMRC acts has real advantages.
- You retain control over the details recorded, including business names and descriptions, which are far harder to correct once HMRC has processed the sign-up itself.
- For clients with more than one business or property, ensuring each is clearly named and distinguished in software is one of the biggest practical lessons from the first quarter.
- Agents are not notified when HMRC signs a client up directly, so proactive registration is the only way to have certainty over a client’s status.
HMRC plans to sign up taxpayers in stages from September, pausing the process around the Self Assessment filing deadline of 31 January 2027.
What we are doing
We are reviewing our client base now to identify anyone who may fall within scope but has not yet signed up, rather than waiting for HMRC’s letters to start arriving.
If you think this might apply to you, or you are simply unsure whether MTD for Income Tax applies to your circumstances, get in touch and we will check your position and, if needed, get you signed up on your own terms.
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