300,000 taxpayers are still to register for MTD this year – and HMRC is set to register them automatically

Making Tax Digital MTD for Income Tax has arrived, but thousands are still to register for MTD. Of the 864,000 tax payers expected to sign up for MTD this year, only 570,000 have done so. This means that 34% have still not registered.

Due to the slow uptake HMRC has announced plans to begin automatically registering taxpayers for MTD from September 2026.

This is a significant change from the original approach. Taxpayers were expected to register themselves or ask their accountant or tax adviser to do it for them.

MTD became mandatory from 6 April 2026 for sole traders and landlords whose qualifying income was more than £50,000 on their 2024/25 tax return. Qualifying income means gross income from self-employment and property, before expenses.

Yet a large number of taxpayers have still not completed the registration process.

HMRC is changing it’s approach to registering for MTD

The message from HMRC has been clear: if you are required to use MTD, you should register for MTD.

However, HMRC’s move towards automatic registration means that taxpayers who have failed to take action may soon find themselves registered by HMRC rather than continuing to sit outside the system.

That does not, however, mean taxpayers can simply forget about MTD.

If HMRC has registered a taxpayer, fewer details can be amended online. The only way to correct a business address, description or even the tax payers name would be over the phone.

Furthermore, automatic registration does not remove the underlying responsibilities. Those affected still need to keep digital records, use compatible software and submit their quarterly updates to HMRC.

The first quarterly update deadline for the 2026/27 tax year was 7 August 2026, with the next deadlines falling on 7 November 2026, 7 February 2027 and 7 May 2027.

Although the first submission deadline has now been missed (by those not yet registered), HMRC is not charging penalties until the 2027/28 tax year.

What should you do now?

If you think you are affected and you have an accountant, speak to them now rather than waiting for HMRC to make the decision for you. If you do not, you should check your position, choose MTD-compatible software and make sure your bookkeeping records are being maintained digitally.

Don’t wait for HMRC to register for MTD

The arrival of automatic registration may sound like a welcome safety net for taxpayers who have not yet registered. But it should not be mistaken for a reason to do nothing.

Unsure if MTD applies to you? Need assistance or advice on how to register for MTD? Looking for help with keeping digital records or submitting your quarterly returns? Please get in touch with Perrys who would be happy to assist you.