HMRC have updated their MTD IT guidance about automatically signing a client up.
ICB have covered the HMRC guidance updates about automatically signing your client up to MTD IT If they believe there is an obligation. This is based on qualifying income in 2024/25 and they will sign your client up and make contact.
This auto-sign-up is outlined in their guidance ‘Check what to do if HMRC has signed you up for Making Tax Digital for Income Tax’ which was published on 24 August 2026. This was updated on 11 September 2026 to clarify issues, specifically outlined in the section ‘Check and confirm the records HMRC has are correct’. This says that HMRC will only auto-sign up a client after they have also checked the 2025/26 return for qualifying income. However, this may not have been submitted as the deadline is 31 January 2027. So:
1. If income ceased before 06 April 2026 and there is no MTD obligation, HMRC’s systems need to have updated information which means submitting the final return; or
2. If income has ceased on or from 06 April 2026, there is a MTD obligation to update HMRC’s systems which also involves sending the 2025/26 tax return
HMRC have also updated their ‘Work out your qualifying income for Making Tax Digital for Income Tax’ guidance about what should be done if all self-employment and property income ceased before 06 April 2026. Essentially, this says that HMRC’s systems need to be updated, otherwise the auto-sign up will continue.
For Bookkeepers
ICB welcomes HMRC’s updated guidance which highlights the importance of sending the 2025/26 tax return ahead of the statutory deadline if qualifying income ceased before 06 April 2026.