HMRC Will Auto-Enrol You Into Making Tax Digital From September 2026 If You Haven't Signed Up

HMRC to Auto-Enrol Outstanding Taxpayers into Making Tax Digital

Making Tax Digital for Income Tax became mandatory for many sole traders and landlords from 6 April 2026, but not everyone who needs to comply has signed up themselves. HMRC guidance confirms that from September 2026, it will begin automatically signing up anyone who is required to use MTD for the 2026/27 tax year and hasn't registered on their own.

Who This Affects

• Sole traders and landlords with total qualifying income from self-employment and property over £50,000 have been mandated into MTD for Income Tax since 6 April 2026

• The threshold drops to £30,000 from 6 April 2027, pulling in a much larger group of smaller landlords and self-employed clients

• A further drop to £20,000 (based on 2026/27 income) is expected from April 2028, though the government says it will keep this under review

How Automatic Sign-Up Works

• HMRC will use information it already holds about you to sign you up if you haven't done so yourself

• To sign up voluntarily in advance, you must be registered for Self Assessment and have submitted a tax return within the last two years

• Signing up yourself gives you the chance to check your details are correct and choose your own timing, rather than being enrolled on HMRC's information alone

Why You Shouldn't Wait to Be Auto-Enrolled

• Once signed up, you're required to keep digital records and submit quarterly updates through compatible software - a habit that's easier to build before it becomes mandatory than after

• Landlords with multiple properties or mixed income sources should check now whether their combined qualifying income takes them over the relevant threshold

• Getting ahead of automatic sign-up means choosing the right software and getting your bookkeeping process sorted on your own timetable, not HMRC's

FAQ

How do I know if I'm over the MTD threshold?

Add together your gross income from self-employment and property in the relevant tax year. If the total is over £50,000 for 2026/27, or over £30,000 from 2027/28, you're within scope.

What if HMRC signs me up automatically - can I still get it right?

Yes, but you'll be relying on the information HMRC already holds. Signing up yourself first lets you review and correct your details before quarterly reporting begins.

Do landlords with joint ownership need to add both owners' shares together?

The threshold is based on your own qualifying income, so it depends on how the property income is split and reported for Self Assessment purposes - this is worth checking with an adviser if your circumstances are mixed.

What happens if I ignore this?

If you meet the threshold and don't act, HMRC will automatically enrol you from September 2026 for the 2026/27 tax year, and you'll still need to meet the quarterly update and digital record-keeping requirements once enrolled.

If you're a landlord or sole trader unsure whether Making Tax Digital for Income Tax applies to you, or you'd rather choose your own software and timing than wait to be auto-enrolled, Jackson Lee Accountants can check your position and get you set up. Get in touch (https://www.jacksonleeaccountants.co.uk/contact-me) today.

Sources: Use software to send Income Tax updates - GOV.UK (https://www.gov.uk/guidance/use-software-to-send-income-tax-updates), Extension of Making Tax Digital for Income Tax Self Assessment to sole traders and landlords - GOV.UK (https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords), SME Tax Update 27 August 2026 - Ross Martin (https://www.rossmartin.co.uk/sme-tax-news/9094-sme-tax-update-27-august-2026)