HMRC to begin signing up remaining MTD for Income Tax customers from September 2026

HMRC will begin signing up customers who should be using Making Tax Digital for Income Tax for the 2026 to 2027 tax year but have not yet done so, in stages over the coming months from September 2026¹. The department said the sign-ups are intended to help those customers meet their requirements¹. Business Debtline, which publishes separate guides for Scotland and for England and Wales, states that HMRC may sign people up automatically and will send a confirmation letter, online or by post, advising that they have been signed up². The Low Incomes Tax Reform Group says HMRC is beginning to do this in stages from September 2026 and that those affected should receive a letter telling them what to do next⁴.

More than 436,000 sole traders and landlords had successfully sent their first quarterly update by the time HMRC published its figures on 12 August 2026, and over 570,000 customers had signed up to the service¹. MTD for Income Tax became mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000¹. The first quarterly update period ran from 6 April 2026 to 5 July 2026 for most customers, with some using calendar update periods running from 1 April to 30 June 2026; the deadline for all customers was 7 August 2026¹. Propertymark reports that the second quarterly update is due by 7 November 2026⁵.

The thresholds widen over the following two tax years. Propertymark, Business Debtline and the Association of Taxation Technicians all give the same dates⁵, and the Low Incomes Tax Reform Group sets out which tax return triggers each start date⁴.

Qualifying income is the combined turnover from self-employment and property before expenses are deducted, according to Propertymark⁵. The Low Incomes Tax Reform Group says the start date is 1 April rather than 6 April for self-employed people whose accounts are made up to 31 March each year⁴. Business Debtline says qualifying income is based on the self assessment tax return due before the start of the relevant tax year, so the April 2026 deadline used the 2024 to 2025 return².

Craig Ogilvie, HMRC's Director of Making Tax Digital, said:

Quarterly updates are summaries of income and expenses sent through HMRC-recognised software; they are not tax returns or tax payments, and the Self Assessment tax return deadline remains 31 January¹. Propertymark says each update covers the tax year to date, so a correction to earlier records can be included in the latest update without resending the previous one, and that an update is still required if there was no income or expenditure in the period⁵. Business Debtline lists the four quarterly filing deadlines as 7 August, 7 November, 7 February and 7 May².

Why it matters for households

Sole traders and landlords with qualifying income over £50,000 were brought into MTD from April 2026 and are already required to keep digital records and send quarterly updates¹. Those who have not signed up face being registered by HMRC rather than choosing their own timing, and the Low Incomes Tax Reform Group notes that HMRC decides who to sign up based on information it holds, which may not always be up to date⁴. Anyone signed up automatically must still comply from the date the rules apply to them unless they qualify for an exemption⁴. There are exemptions, including for people who are digitally excluded¹.

No penalty points will be issued for late quarterly updates during the 2026 to 2027 tax year, but HMRC must receive the updates before a user can submit their tax return, and penalties still apply for late tax returns and late payments¹. From 6 April 2027, points-based penalties apply where a quarterly deadline is missed: one point per missed deadline, with a £200 fixed penalty once four points are accumulated, and points expire after a period of compliance¹. More detail is set out in the site's guide to Making Tax Digital penalty points and late payment penalties.

The April 2027 extension brings in sole traders and landlords with qualifying income over £30,000¹. Propertymark notes that landlords whose 2025-26 tax return shows turnover over £30,000 may therefore need to use MTD from April 2027⁵. The ATT says HMRC is now accepting exemption applications for the 2027/28 tax year, and that applications for 2026/27 should have been made before the 7 August deadline for the first quarterly update⁶.

What happens next

HMRC said new guidance would be published in late August 2026 explaining what customers need to do if they receive a letter about being signed up¹. The second quarterly update for those already using MTD is due by 7 November 2026⁵. The threshold falls to more than £30,000 from April 2027 and more than £20,000 from April 2028⁵. The ATT says the Government remains committed to extending MTD to general partnerships but no start date has been confirmed, and Business Debtline likewise says exact dates have not been given³.