HMRC to auto-enrol unregistered taxpayers into Making Tax Digital from September 2026
HMRC has updated its Making Tax Digital for Income Tax guidance to confirm mandation from April 2026 and a backstop: from September 2026 the department will sign up those who qualify but have not enrolled themselves. For advisers and in-house finance teams handling sole trader and landlord clients, the update sets the eligibility test, the identity checks and the penalty position for the first year.
- Mandatory from 6 April 2026 for those whose total self-employment and property income exceeds £50,000, based on the prior year's tax return.
- From September 2026 HMRC will auto-enrol qualifying taxpayers who have not signed up, using only data it already holds.
- No penalty points for late quarterly updates in 2026-27, but penalties still apply to late tax returns and late payment.