HM Revenue & Customs has begun writing to sole traders and landlords who were required to join Making Tax Digital for Income Tax from April 2026 but have not yet signed up themselves, confirming that the department will register them automatically in stages from September 2026. Updated guidance published on GOV.UK, last revised 24 August, sets out the process, alongside a mandatory "checking step" that anyone signed up this way must complete through their Personal Tax Account, Business Tax Account, or their agent's Agent Services Account.
The numbers behind the push
In a press release dated 12 August, HMRC said more than 436,000 sole traders and landlords had successfully sent their first Making Tax Digital for Income Tax quarterly update, covering the period from 6 April to 5 July 2026. Separately, more than 570,000 customers had signed up to the service in total by that point. The Association of Taxation Technicians, citing HMRC's own figures, put the total mandated population at an estimated 864,000 — meaning close to 294,000 taxpayers who should already be using the service had not registered by mid-August, based on simple arithmetic against HMRC's published totals.
Craig Ogilvie, HMRC's Director of Making Tax Digital, said in the press release: "If you haven't yet signed up, now is the time to do so. Taking action now means you stay in control, can make sure your Making Tax Digital for Income Tax details are correct from the start, and have time to choose the software that works best for you, rather than waiting for HMRC to sign you up from September." HMRC said the auto-registration exercise "will happen in stages over the coming months" and confirmed that new guidance explaining what to do after receiving a sign-up letter was published in late August.
Who is affected
The obligation applies to sole traders and landlords whose qualifying income from self-employment and property — the gross figure before expenses — exceeded £50,000 in the 2024/25 tax year. That threshold brought them into Making Tax Digital for Income Tax from 6 April 2026. According to the Association of Taxation Technicians, HMRC's September sign-up drive covers only this group. Taxpayers who become liable from April 2027, when the qualifying-income threshold drops to £30,000, or from April 2028, are not part of the current exercise and are still expected to register themselves or through an agent when their turn comes.
The checking step, explained
Once HMRC signs someone up, the taxpayer receives a letter or a digital message, depending on their stated contact preference. That communication triggers a requirement described by the Association of Taxation Technicians as the "checking step" — an action that only applies where HMRC, rather than the taxpayer or their agent, has carried out the registration.
The check runs through the taxpayer's Personal Tax Account or Business Tax Account, or through the agent's Agent Services Account, and asks them to confirm that HMRC's record of their active businesses is accurate. Because HMRC's registration data is drawn from the 2024/25 tax return, it can lag behind reality — a sole trade that has since closed, for instance, may still appear on the system as active. The checking step allows a ceased business to be flagged and a new one to be added, though a newly added business remains subject to the standard "latency period" rule before it counts toward Making Tax Digital obligations. One limitation carried over from the underlying design: the checking step cannot be used to change the name attached to an existing business record. That correction is only available through the full sign-up route, used either by the taxpayer directly or by their agent.
Agents left to check manually
HMRC has told the Association of Taxation Technicians that sign-up letters go directly to the taxpayer, with no copy routed to the agent, even where authority to act has been granted. The letter itself is written to encourage the client to discuss it with their accountant, but the Association noted there is currently no client list inside the Agent Services Account that would let a firm see at a glance which clients HMRC has processed.
In the absence of that overview, agents have been advised to check individual client records directly: logging into the Agent Services Account, opening the Making Tax Digital for Income Tax section, selecting "Manage Self Assessment details for clients that are already signed up," and entering the client's Unique Taxpayer Reference. Where a client has been signed up incorrectly — commonly because a business ceased after the 2024/25 return was filed — the Association's advice is to contact HMRC through the Agent Dedicated Line to have the record corrected.
Penalties and a scheduled outage
No penalty points apply to late quarterly updates during the 2026/27 tax year, whether the taxpayer registered themselves or was signed up by HMRC; late tax returns and late payments remain separately penalised under existing rules. From 6 April 2027, the points-based regime extends to missed quarterly deadlines: each missed submission adds one point, a £200 fixed penalty follows once four points accumulate within the rolling window, and points lapse after a period of compliance.
Anyone planning to sign up in the coming fortnight should note the sign-up service's own maintenance window: GOV.UK guidance states the service will be unavailable from 5pm on Friday 11 September 2026 until 1pm on Tuesday 15 September 2026. To register — whether voluntarily or ahead of HMRC's own sweep — a taxpayer must already be registered for Self Assessment and have submitted a return within the last two tax years.