HMRC says it has signed you up for Making Tax Digital: what to do
Source basis: GOV.UK guidance. Check recorded 27 October 2026. Checks and limitations
General guidance. Independent tax-professional review is pending.
Short answer
From September 2026, HMRC is signing up people whose qualifying income was over £50,000 in the 2024 to 2025 tax year and who had not signed up themselves. If you have had the letter, sign in to HMRC online services, check the records HMRC holds, get compatible software, then catch up on your records and any overdue quarterly update.
The four steps
1. Sign in to HMRC online services with the details you use for Self Assessment and select Making Tax Digital for Income Tax. If you have never used HMRC online services, set up an account first.
2. Check the records HMRC holds about your self-employment and property income. Add any new income sources and tell HMRC about any that have stopped. All your UK properties count as one UK property business, and all your overseas properties as one foreign property business.
3. Get software that works with MTD for Income Tax and covers all your income sources. HMRC does not provide software. Compare all recognised software.
4. Authorise your software, check its accounting period, create digital records from the start of the tax year, and send your overdue quarterly update as soon as possible.
Penalties for the late update
There are no penalty points for missing a quarterly update deadline in the 2026 to 2027 tax year. You still have to send your final quarterly update before you can submit your tax return, and penalty points do apply if you miss the tax return deadline.
Your 2025 to 2026 tax return is still due by 31 January 2027, sent the way you send it now.
Basis: Check what to do if HMRC has signed you up · 436,000 sole traders and landlords make their tax digital (HMRC news)
If your income has stopped
If all your self-employment and property income stopped before 6 April 2026: update your information in your HMRC online account. You do not need to use MTD, but you still have to send your 2025 to 2026 tax return.
For people HMRC has signed up for the 2026 to 2027 tax year, if it all stopped on or after 6 April 2026: you still need MTD software to send a quarterly update up to the date it stopped and to submit your 2026 to 2027 tax return. After that you do not need to use MTD.
If you think HMRC is wrong
Contact HMRC through Self Assessment: general enquiries if you have been signed up but do not think you need to use MTD. You may be able to get an exemption, for example if you are digitally excluded.
Sources
- GOV.UK: Check what to do if HMRC has signed you up, updated 11 September 2026
- GOV.UK: 436,000 sole traders and landlords make their tax digital (HMRC news), updated 12 August 2026
This page was last checked against these sources on 27 October 2026. It is general information, not tax advice. Report a mistake.