HMRC may sign you up for Making Tax Digital without asking

HMRC's guidance confirms that Making Tax Digital for Income Tax becomes mandatory from 6 April 2026 for sole traders and landlords whose qualifying income was over £50,000 in the 2024 to 2025 tax year, unless they're exempt. From September 2026, HMRC is signing up anyone who meets this threshold but hasn't registered themselves or through an agent. This will happen in stages, and HMRC says it will contact people once they've been signed up, either through their HMRC online account or by post.

Once signed up, you'll need to check the income and property details HMRC already holds, based on your 2024 to 2025 (and 2025 to 2026, if filed) tax returns. All UK properties count as one property business for this purpose, and all overseas properties as another. You'll need to add anything that's changed since your last tax return, including new or ceased income sources.

You'll then need compatible software to create digital records, send quarterly updates, and eventually submit your tax return. HMRC does not provide this software itself. For the 2026 to 2027 tax year, you won't get penalty points for missing a quarterly update deadline, but penalty points still apply for missing the tax return deadline.

This is a UK-wide tax rule set by HMRC, so it applies in England, Wales, Scotland and Northern Ireland alike. It affects any landlord (or sole trader) whose qualifying income was over £50,000 in the 2024 to 2025 tax year, regardless of how many properties they hold.

If you haven't signed up yourself and meet the threshold, HMRC will sign you up on your behalf over the coming months. You still have to submit your 2025 to 2026 tax return by 31 January even if you're waiting to hear from HMRC.

• Check your HMRC online account to see if you've already been signed up, or if a message confirms you're not yet enrolled
• If HMRC has signed you up, check and correct the income and property details it holds, including any new or ceased income sources
• Choose Making Tax Digital-compatible software, since HMRC does not provide this
• If you think you shouldn't need to use the service, or you may qualify for an exemption (for example, digital exclusion), contact HMRC or check with your accountant
• If you use an agent, ask them to confirm whether you've been signed up and to review your details on your behalf