HMRC MTD auto-enrolment is being introduced from September 2026 for eligible sole traders and landlords who have not registered for Making Tax Digital for Income Tax.
It covers people required to use the service in 2026/27, generally because their qualifying income exceeded £50,000 in 2024/25 and they are not exempt.
HMRC is signing people up in stages and contacting them afterwards. However, automatic registration does not complete the preparation.
Taxpayers must still check their income details, arrange compatible software, create digital records and submit the required updates.
Last Updated: 12.09.2026
What Is HMRC MTD Auto Enrolment?
HMRC MTD auto-enrolment means HMRC registers an eligible taxpayer for Making Tax Digital for Income Tax when they have not completed registration themselves or through an agent.
MTD changes how qualifying sole traders and landlords maintain records and report income and expenses.
Those within the system use compatible software to:
- Create and store digital records
- Send quarterly summaries of business and property income and expenses
- Complete their annual tax return
Automatic enrolment handles registration, but responsibility for reporting remains with the taxpayer. HMRC does not automatically organise bookkeeping records or submit updates on their behalf.
What Has Changed From September 2026?
Previously, taxpayers were expected to sign up themselves or ask their accountant to complete the process. From September 2026, HMRC is also registering people who should already be using MTD for Income Tax but have not joined.
The rollout takes place over several months. Therefore, September is the beginning of the process, rather than a single date when every affected person becomes registered.
There is also an important distinction between two types of correspondence:
- An Eligibility Notice: Explains that HMRC believes you need to use MTD
- An Enrolment Confirmation: Confirms that HMRC has already signed you up
If HMRC has not registered you yet, you can still sign up yourself or through your agent. Waiting for automatic enrolment does not postpone your existing obligations.
Who Is Affected by MTD Automatic Enrolment?
The announced HMRC MTD auto-enrolment process concerns taxpayers required to use MTD for Income Tax in 2026/27 who have not registered.
Generally, this includes individuals with self-employment income, property income or both, whose qualifying income exceeded £50,000 in 2024/25, unless an exemption applies.
What Counts as Qualifying Income?
Qualifying income generally means your combined gross income from self-employment and property before expenses are deducted.
For example, someone with £35,000 in self-employment turnover and £20,000 in gross rental income has £55,000 of qualifying income. They could fall within the 2026 rules even if their profit after expenses is much lower.
Employment wages, pensions and dividends are not generally included in this qualifying-income calculation. They may still need to be included in the annual tax return.
The threshold is over £50,000, rather than £50,000 or more.
MTD Income Thresholds for 2026, 2027 and 2028
| Qualifying Income | Tax Year Used to Assess Income | Mandatory MTD Start Date |
| Over £50,000 | 2024/25 | 6 April 2026 |
| Over £30,000 | 2025/26 | 6 April 2027 |
| Over £20,000 | 2026/27 | 6 April 2028 |
These are mandatory entry thresholds. They should not be confused with a confirmed automatic enrolment timetable for every future group.
The September 2026 automatic sign-up arrangements specifically address people who should already be using MTD in 2026/27.
How Can You Check Whether HMRC Has Enrolled You?
Sign in to HMRC online services using the details you use for Self Assessment and access the Making Tax Digital for Income Tax service.
HMRC says an on-screen message will confirm if you are already signed up. You may then be asked to confirm your income sources.
Confirmation can also arrive through HMRC online services or by post, depending on your circumstances.
If you use an accountant, share any enrolment correspondence with them. Your agent can check the position through their agent services account, provided the appropriate authorisation is in place.
Receiving a letter does not mean your software and reporting arrangements are ready. Check what still needs to be completed.
What Should You Do After HMRC Automatically Enrols You?
The most useful response to HMRC MTD auto-enrolment is to work through your account, records and software promptly.
Check Your Business and Property Income Details
Review the income sources HMRC has recorded and confirm that they reflect your circumstances.
Check for:
- Existing self-employment businesses
- UK property income
- Overseas property income
- New income sources started since your previous return
- Businesses or property income sources that have ceased
For these purposes, UK properties are generally grouped as one UK property business, while overseas properties form a separate foreign property business.
HMRC’s records are based on your 2024/25 return and may also reflect your 2025/26 return if it was submitted before automatic enrolment.
Choose and Authorise Compatible Software
HMRC does not supply accounting software for MTD for Income Tax. You or your accountant must arrange suitable software and authorise it to work with HMRC.
You can use an all-in-one product or a combination of compatible products. Free and paid options are available, although their features and eligibility conditions vary.
Before choosing, check:
- Whether It Supports All Your Income Sources
- Whether It Handles Quarterly Updates and Annual Filing
- Whether It Supports Your Accounting Period
- Whether It Works With Your Existing Bookkeeping Arrangements
- Whether Your Accountant Can Use It With You
If you use spreadsheets, check how they will connect to compatible software. A spreadsheet alone does not complete the submission process.
Catch Up on Digital Records and Overdue Updates
Being enrolled in September does not mean your record-keeping obligations begin in September.
If you were required to use MTD from 6 April 2026, you need to catch up with digital records from the start of the tax year, taking account of your applicable accounting period and income sources.
Authorise the software, check its accounting-period settings and submit overdue updates as soon as possible. Your HMRC account should show overdue obligations and upcoming deadlines.
Agree a practical timetable with your accountant if several months of records need to be entered or checked.
What If You Have Not Received an HMRC Letter?
Not receiving a letter does not establish that you are outside MTD.
Check your qualifying income and registration status yourself. HMRC is carrying out automatic enrolment in stages, so people will not all receive confirmation at the same time.
If you are required to use MTD and have not been signed up, you can still register yourself or ask your agent to do it.
Equally, do not assume that being registered for Self Assessment means you are already registered for MTD for Income Tax. They are separate parts of the process.
What If HMRC’s Records Are Wrong or Your Business Has Closed?
Outdated information can create confusion during HMRC MTD auto-enrolment. The appropriate response depends on what has changed and when.
Incorrect Income Sources: Review and update the business and property details shown in your account. If you believe HMRC has enrolled you incorrectly, contact Self Assessment general enquiries. Agents should use the relevant agent support route.
All Qualifying Income Sources Ceased Before 6 April 2026: If HMRC has enrolled you, update your information through your online account. You will not need to use MTD for Income Tax, but you must still submit any required 2025/26 tax return.
All Qualifying Income Sources Ceased On or After 6 April 2026: You will still need compatible software to send a quarterly update covering the period up to cessation and submit your 2026/27 tax return. You will not need to continue using MTD after this.
Closing one business does not necessarily remove the requirement if other qualifying activities continue. Check each income source rather than treating one closure as an automatic exit.
Can You Get an Exemption From MTD for Income Tax?
Some taxpayers qualify for exemptions. Digital exclusion is one possible basis where it is not reasonable to use compatible software for digital records, quarterly updates, and annual filing.
Circumstances can include difficulties related to disability, age, location or religious beliefs, but eligibility depends on the applicable rules and individual situation.
Disliking software or finding it inconvenient does not automatically establish an exemption.
If you believe you qualify, follow HMRC’s exemption process. If an application is already outstanding, check its status rather than assuming it has been approved.
Taxpayers who have already been automatically enrolled can still raise concerns about whether they should be required to use the service.
What Are the MTD Quarterly and Annual Filing Deadlines?
For taxpayers using standard update periods in 2026/27, the quarterly figures are cumulative. Each update covers the tax year to the relevant period end.
| Reporting Requirement | Period Covered | Deadline |
| First Quarterly Update | 6 April to 5 July 2026 | 7 August 2026 |
| Second Quarterly Update | 6 April to 5 October 2026 | 7 November 2026 |
| Previous Year’s Self Assessment Return | 2025/26 Tax Year | 31 January 2027 |
| Third Quarterly Update | 6 April 2026 to 5 January 2027 | 7 February 2027 |
| Fourth Quarterly Update | 6 April 2026 to 5 April 2027 | 7 May 2027 |
| First Mandatory MTD Annual Tax Return | 2026/27 Tax Year | 31 January 2028 |
Calendar update periods are also available, with different period boundaries but the same quarterly deadlines.
Quarterly updates do not replace the annual tax return. The year-end process includes checking the final figures, making relevant adjustments and reporting other income.
Quarterly reporting also does not introduce quarterly Income Tax payments. Existing payment arrangements, including payments on account where applicable, continue.
Are There Penalties for Missing MTD Deadlines?
For taxpayers required to use MTD from 6 April 2026, HMRC will not apply penalty points for late quarterly updates for the 2026/27 tax year.
However, this does not make quarterly updates optional. Taxpayers must continue keeping digital records and send their final quarterly update before submitting the annual return.
The temporary treatment does not remove consequences for:
- Missing the Annual Tax Return Deadline
- Paying Tax After the Due Date
HMRC MTD auto-enrolment should therefore be treated as a prompt to catch up, rather than permission to leave reporting until the end of the year.
How Does Income Tax Auto Enrolment Differ From MTD for VAT?
MTD for VAT and MTD for Income Tax are separate services.
HMRC generally automatically signs VAT-registered businesses up for MTD for VAT unless they are exempt or have applied for an exemption.
For Income Tax, the September 2026 initiative targets people required to use MTD in 2026/27 who have not registered.
Being enrolled for MTD for VAT does not mean your Income Tax arrangements are complete. A business may need to comply with both systems, each with its own reporting obligations.
Conclusion
HMRC MTD auto-enrolment changes how eligible taxpayers enter the system, but it does not remove the work needed to comply.
Check whether you have been registered, confirm your income sources, arrange compatible software and catch up on outstanding records and updates.
If your circumstances have changed or you believe an exemption applies, resolve that with HMRC rather than ignoring the enrolment.
FAQs
Does HMRC MTD Auto Enrolment Apply to Everyone?
No. The September 2026 process covers people required to use MTD for Income Tax in 2026/27 who have not already registered.
Should I Wait for HMRC to Sign Me Up?
No. If you need to use MTD and have not been enrolled, you can still sign up yourself or through your accountant.
Do I Need Records From April If I Am Enrolled in September?
Generally, yes. If your mandatory start date was 6 April 2026, later enrolment does not move your record-keeping start date to September.
Does Automatic Enrolment Include Accounting Software?
No. You or your agent must choose and authorise compatible software. HMRC does not supply it as part of enrolment.
Can My Accountant Manage MTD After Automatic Enrolment?
Yes. An appropriately authorised accountant can check your details and manage MTD tasks on your behalf.
Can I Challenge an Incorrect MTD Enrolment?
Yes. Contact HMRC if you believe you should not have been enrolled, and check whether your circumstances meet the exemption rules.
Do I Still Need to Submit My 2025/26 Self Assessment Return?
Yes, if required. Submit it through the usual process by 31 January 2027, even if you are already using MTD for 2026/27.