HMRC to start Making Tax Digital for Income Tax automatic enrolment

The lowdown

If you are:

• a sole trader or landlord, and
• you had qualifying income of £50,000 or more in the 2024/25 tax year

you must join MTD for income tax for the current (2026/27) tax year. The registration deadline for MTD for income tax was 6th April 2026 and the first quarterly update was due on 7th August 2026, with the second quarterly update due on 7th January 2027. 

What does MTD for income tax mean for me? 

Under MTD for income tax, taxpayers are required to:

• keep digital bookkeeping records
• submit quarterly updates to HMRC, and
• file your end of year tax return

through MTD-compatible software.  

The MTD regime will be extended to taxpayers with qualifying income over £30,000 from 6th April 2027 and over £20,000 from 6th April 2028. 

What's happening now?

HMRC estimated that 864,000 sole traders and landlords met the qualifying crietria for MTD for income tax this year, but by mid-August 2026 only 570,000 taxpayers had registered. HMRC has therefore decided to automatically enrol the remaining taxpayers. 

Automatic enrolments have begun in stages this month (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 for you, if you prefer. 

If HMRC let you know that you have been auto-enroled into MTD for income tax, there is advice on your next steps here or speak to an accountant for help and advice to get you up and running.

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 01942 608 999 or use our online contact form here. 

Last updated: 10th September 2026