HMRC set to sign taxpayers up for MTD for Income Tax

From September 2026, HMRC intends to write to taxpayers who need to use the Making Tax Digital for Income Tax (MTD for IT) service but who have not registered to let them know HMRC has signed them up on their behalf.

21 Aug 2026

From September 2026, HMRC intends to write to taxpayers who need to use the Making Tax Digital for Income Tax (MTD for IT) service but who have not registered to let them know HMRC has signed them up on their behalf.

HMRC will send letters confirming who needs to register for and use MTD for IT in the 2026/27 tax year.

Letters will arrive by post or can be viewed in HMRC online services depending on taxpayer preferences. The letters will be sent out in stages over the coming months and individuals will be contacted after HMRC has signed them up.

HMRC will also remind taxpayers that they need to use MTD compatible software to create and store digital records for their MTD sources of income; send quarterly updates to HMRC; and submit an end-of-year tax return.

Under the new late submission penalties, a penalty point is awarded where a quarterly update or tax return deadline is missed. Once a four-point threshold is reached, a financial penalty will be issued.