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HMRC to start Making Tax Digital for Income Tax automatic enrolment
HMRC has announced that from September 2026 it will be automatically enrolling qualifying taxpayers who have failed to register themselves for Making Tax Digital (MTD) for income tax.
First published 19 Aug 2026
By Helen Wood, CA 1 min read
Making Tax Digital
This will affect sole traders and landlords who had qualifying income of £50,000 or more in the 2024/25 tax year and who were required to join the scheme from 6th April 2026.
Under MTD for income tax, participants are required to keep digital bookkeeping records and submit quarterly updates to HMRC using compatible software.
The regime will be extended to taxpayers with qualifying income over £30,000 from April 2027 and over £20,000 from 2028.
Automatic enrolments will take place in stages from September 2026 and, while taxpayers can wait to be contacted by HMRC, registering voluntarily now is more beneficial. Registering as soon as possible means you can ensure your details are up to date and correct, choose suitable software, seek professional advice and engage an accountant to maintain records and file your updates, if you prefer.
How TaxAssist Accountants can help you
If you are a sole trader or landlord and are unsure whether MTD for Income Tax applies to you, our team at TaxAssist Accountants can help. We can:
- review your circumstances
- explain your obligations
- assist with registration
- recommend suitable software and
- provide ongoing support with your bookkeeping and tax compliance.
To book a free initial consultation, call us on 01959 581599 or use our online contact form here.
Frequently Asked Questions
If you joined the MTD for income tax regime for the 2026/27 tax year, you won’t need to file a self-assessment tax return for 2026/27, because you will be required to file an end of year tax return through your MTD software solution instead. However, you will still need to file a self-assessment tax return for 2025/26 if you have not already done so.
Missing a quarterly update deadline earns one penalty point under HMRC’s points-based system. Accumulating four points within a 24-month period triggers a £200 financial penalty, with a further £200 for each subsequent late submission. Note that HMRC will not issue penalty points for late quarterly updates during the 2026/27 tax year (the soft landing period), but this protection does not apply to the end of year tax return.
You need software that is recognised by HMRC as compatible with Making Tax Digital (MTD) for income tax. HMRC maintains an up-to-date list of compatible software products on GOV.UK, including a personalised software finder tool. Compatible software must be able to create and store digital records of your income and expenses, submit quarterly updates directly to HMRC, and support your end of year tax return submission. Bridging software is also available if you prefer to continue using spreadsheets. It connects your existing records to HMRC's systems. A TaxAssist Accountant can help you choose the right solution for your business.
Making Tax Digital (MTD) is HMRC's programme to digitalise the UK tax system. MTD for VAT is already mandatory for all VAT-registered businesses. From 6th April 2026, MTD for income tax became mandatory for sole traders and landlords with annual income above £50,000. This threshold will fall to £30,000 in April 2027 and £20,000 in April 2028. Affected businesses must use HMRC-recognised software to keep digital records and submit quarterly income and expense updates to HMRC. If your income is below the current threshold, you are not yet required to comply, but adopting digital tools now is recommended to avoid a last-minute scramble.
First published 19 Aug 2026
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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