HMRC has confirmed an important change for sole traders and landlords who should already be using Making Tax Digital for Income Tax but have not yet registered. From September 2026, HMRC's automatic MTD sign-up will begin ...
HMRC's automatic MTD sign-up will begin in September, streamlining tax reporting for businesses and individuals
I think this is a significant development because it changes the position from HMRC reminding people to take action to HMRC actually taking that first step for them. It will be introduced gradually starting in September for people who should be using MTD in the 2026/27 tax year.
However, HMRC is still encouraging taxpayers to register themselves rather than wait!
I can see the sense in that. Signing up yourself gives you an opportunity to check that your details are correct, ensure suitable accounting software is in place and understand what will be expected before HMRC contacts you.
The numbers suggest there is still plenty of work to do. HMRC estimates that around 864,000 taxpayers are included in the first mandatory MTD cohort.
More than 570,000 sole traders and landlords have now registered, leaving approximately 294,000 still to do so. HMRC's automatic MTD sign-up could therefore affect a substantial number of people over the coming months.
Registration is only part of the story. More than 436,000 taxpayers have successfully submitted their first quarterly update, which suggests around 134,000 of those already registered had not done so when the latest figures were published. That means roughly three-quarters of registered taxpayers have completed their first reporting requirement.
There is some breathing space during this first year!
HMRC has confirmed that taxpayers will not receive penalty points for late quarterly updates during 2026/27. From the 6th of April 2027, however, the points-based penalty regime will apply. Missing quarterly deadlines will incur penalty points, and once four points have accumulated, a fixed £200 penalty can be charged.
For me, that makes HMRC's automatic MTD sign-up something taxpayers should not simply ignore, as penalties are temporarily relaxed.
I think the sensible approach is to treat this first year as an opportunity to get comfortable with digital record-keeping and quarterly reporting. Leaving everything until HMRC intervenes may remove the need to register yourself, but it does not remove your MTD responsibilities.
If you believe you should already be using Making Tax Digital, I would recommend getting in touch and putting everything in order now.
HMRC's automatic MTD sign-up may ensure taxpayers enter the new system, but taking control yourself gives you more time to check your records, software and reporting arrangements before the penalty regime begins in April 2027.
If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about HMRC's automatic MTD sign-up, then do call me on 01908 774320 and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
The state pension triple lock has played an important role in protecting pensioners from falling behind as wages and prices rise. For many people, particularly those with little other retirement income, that protection matter...
Cybersecurity risks for businesses continue to evolve, and recent incidents show that it is no longer enough to think of cybersecurity as something that concerns only large organisations or technology companies. The ways a bu...
There has been plenty of discussion about UK business growth recently, and the Chancellor has now given us some indication of the direction the Government intends to take in the October Budget ......
Growth is talked about constantly, but I think we sometimes overlook something rather obvious. Businesses need the confidence and financial headroom to invest before meaningful growth can happen. Right now, the cost of doing ...
Qualifications and technical experience will always matter when businesses recruit new people. However, recent research highlighted by the BBC suggests that the soft skills employers seek are becoming increasingly important t...
There is no shortage of political discussion about UK economic growth, but the more important question is what must change to achieve it. Governments can publish strategies and promise reform, but sustainable growth depends o...
The Companies House accounts filing changes coming into force from April 2028 may sound comfortably distant, but I think businesses would be wise to start understanding them now. The reforms will change both how company accou...
Running a business can be rewarding, but it can also put considerable pressure on the person in charge. These mental health tips for business leaders can help owners and managers protect their well-being while continuing to m...
It would be easy to describe YourPING as an app, but that doesn't really explain what we're trying to achieve. The technology is simply the mechanism ...
Finding the right accommodation for business travellers in Milton Keynes isn't just a matter of comparing nightly rates. When you're visiting for a fe ...
Sometimes there isn't anything obviously wrong with your job. You turn up, do what is expected of you, get paid and repeat the process the following w ...
A daily reassurance check-in is a simple way to let someone know you are OK. At an agreed time each day, you receive a check-in and respond to confirm ...
All content on this blog, including but not limited to text, images, videos and audio, is protected by copyright. No part of this blog may be reproduced, copied, distributed, or otherwise used without the prior written consent of the author. Unauthorised use constitutes a breach of intellectual property rights.
Please note that many elements of this blog have been created using Artificial Intelligence (AI). As such, content may not always reflect verified facts or professional advice. The information provided is for general interest only and should not be relied upon as a sole source for making decisions, financial or otherwise. Readers are strongly advised to seek independent advice from qualified professionals appropriate to their country and situation.
The author of this blog, YourPCM Limited, and its directors, employees, and authorised agents accept no liability for any loss, harm, or consequence arising from the use or interpretation of content found on this site.
The sblogit.com platform is provided on an “as is” basis. By continuing to view or interact with this blog, you acknowledge and accept these terms. If you do not agree with any part of this notice, please cease using this site immediately.
YourPCM Limited is a company registered in the UK and operates exclusively under the jurisdiction of the laws of England and Wales.
