HMRC Starts Automatically Enrolling Taxpayers in Making Tax Digital: Could You Be Registered Without Applying?

From September 2026, HMRC has started automatically signing up taxpayers for Making Tax Digital (MTD) for Income Tax. This applies to sole traders and landlords who are required to use the new system for the 2026/27 tax year but have not signed up themselves or through an accountant. If HMRC’s records show that your qualifying income for the 2024/25 tax year was over £50,000, you may be registered without submitting a separate application.

After automatic enrolment, HMRC will notify you by letter or through your online account. It is important to understand that HMRC uses the information it already holds, including details from your previous Self Assessment Tax Return. This means it may not reflect changes that have occurred since your last return was submitted, such as stopping self-employment, changing your income sources or changes to your rental circumstances.

If HMRC has signed you up automatically, you should check your details and make sure all your income sources are recorded correctly. You will also need to prepare to use compatible software to keep digital records and submit quarterly updates. If you no longer receive self-employment or property income, or believe you qualify for an exemption from MTD, it is important to contact HMRC and check whether your registration status needs to be changed.

Automatic enrolment does not remove your responsibility for keeping accurate records and submitting the required information on time. Therefore, it is important not to ignore HMRC notifications or leave preparations until the last minute. Capital Accountants can help you check whether MTD applies to your circumstances, review your registration details and prepare you to use the new system.