MTD – Guidance Changes if You Have Not Signed-Up

HeaderImage

If a client has not signed-up for Making Tax Digital for Income Tax (MTD IT) and HMRC believe they should have, from September 2026 they will sign them up and make contact. They have updated their guidance which ICB outlines.

If a client’s qualifying income was over £50,000 in the 2024/25 tax year, there is an obligation to sign-up for MTD IT unless an exemption applies.  This means using MTD IT-compatible software and sending quarterly updates to HMRC.  Many individuals and agents have done this, however, some have not.  This changes from September 2026 in stages. 

If HMRC believe there is an obligation, based on qualifying income in 2024/25, they will sign your client up and make contact.  They have updated various pieces of guidance to explain this auto-sign-up and ICB outlines this below: 

Guidance

Update

Check what to do if HMRC has signed you up for Making Tax Digital for Income Tax

New guidance added advising the HMRC sign-up process and ICB points you to the sections:

  • ‘If HMRC has signed you up;
  • ’After HMRC has signed you up’;
  • ‘If you’ve not been contacted by HMRC’; and
  • ‘If you think you do not need to use the service’

Making Tax Digital for Income Tax (collection)

Information about HMRC auto-sign-up from September 2026 added

Making Tax Digital for Income Tax as an agent: step by step (collection)

Information about HMRC auto-sign-up from September 2026 added.  They have also added the same information to the step-by-step collections aimed at sole traders and landlords

Sign up your client for Making Tax Digital for Income Tax

Information about HMRC auto-sign-up from the perspective of the client telling the agent they have been contacted by HMRC.  They have also added the same information to guidance aimed at sole traders and landlords

For Bookkeepers

ICB advises members to be aware of HMRC’s auto-sign-up campaign, starting September 2026. 

This is obviously an attempt to capture those who HMRC believe should be within MTD IT but have not been registered for one reason or another.

 

loading