HMRC to start signing people up for Making Tax Digital
HMRC is set to start signing people up for Making Tax Digital (MTD) for Income Tax from September 2026.
If you are required to use MTD for Income Tax but have not signed up yourself, HMRC may use the information it already holds to sign you up.
Who does this apply to?
MTD for Income Tax is being introduced in stages, based on your qualifying income from self-employment and property:
Based on your 24/25 tax year income Over £50,000 – you need to use MTD from 6 April 2026.
Based on 25/26 return income Over £30,000 – you will need to use MTD from 6 April 2027
What happens if HMRC signs you up?
You may receive a letter or email explaining that you have been signed up and outlining what you need to do next.
You, or your tax agent, will then need to log in to HMRC's online services to check that the information HMRC holds is correct. If anything has changed, you may need to update your details.
Can you sign up yourself?
Yes. If you know that you need to use MTD for Income Tax, you don't have to wait for HMRC to sign you up.
You can sign up yourself through HMRC, or ask your accountant or tax agent to do this on your behalf. This gives you the opportunity to check your information and make sure everything is correct from the start.
You'll also need to make sure you have compatible software in place to keep your digital records and send your quarterly updates to HMRC.
What should you do now?
If you think you need to use MTD for Income Tax and haven't signed up yet, it's worth checking your position and getting set up rather than waiting for HMRC to contact you.
HMRC will begin signing people up from September, so make sure you're ready.
Click the attachment below to see the HMRC sign up letter:
If you would like support on anything raised or to see how HPC Accountancy could support you and save you tax, get in touch today!
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