MTD for Income Tax is now a reality for thousands of self-employed people and landlords. However, HMRC has announced that it will start signing up taxpayers who should have joined in April 2026 but haven’t registered yet.
If that sounds worrying, don’t panic.
MTD doesn’t have to be scary when you’re organised.
At JDH, we prepared our clients well in advance. We helped them understand what MTD meant, get their digital records ready and make sure they knew what they needed to do.
As a result, all of our clients’ Quarter 1 submissions were filed on time.
So, what does HMRC’s latest announcement mean if you haven’t signed up yet?
What is happening with MTD for Income Tax?
HMRC expected around 864,000 taxpayers to join MTD for Income Tax from April 2026.
So far, more than 570,000 have registered, and over 436,000 have successfully filed their first quarterly updates.
However, thousands of taxpayers who HMRC believes should already be using MTD have not yet signed up.
Therefore, from September 2026, HMRC will start signing up those taxpayers itself.
HMRC will contact taxpayers by letter or digital message with information about what they need to do next.
Who does MTD for Income Tax affect?
MTD for Income Tax currently affects individuals with qualifying self-employed or property income above the relevant threshold.
If you should have joined from April 2026 but haven’t done so, HMRC may now sign you up automatically.
However, HMRC’s records are not always up to date.
For example, you may have:
- Stopped trading since your last tax return
- Stopped a property business
- Become exempt from MTD
- Changed your circumstances since HMRC last received your information
That’s why it’s important to check your position rather than simply assuming HMRC has got it right.
What should you do if HMRC signs you up?
First of all, don’t panic.
HMRC will send you information explaining what happens next. You should then check that the details HMRC holds about your businesses are correct.
You’ll also need to make sure you:
- Keep digital records
- Use MTD-compatible software
- Submit your quarterly updates
- Keep your records up to date throughout the year
- Complete your tax return using compatible software
If HMRC has incorrectly included you in MTD, you should contact them as soon as possible.
What if you haven’t filed your first MTD update?
The first quarterly update deadline was 7 August 2026.
If you missed it, there is no need to panic. HMRC has confirmed that there are no penalty points for late quarterly updates during the 2026/27 tax year.
Because the quarterly updates work cumulatively, you can catch up through a later submission.
However, that doesn’t mean you can ignore MTD for the rest of the year.
You still need to keep digital records and meet the MTD requirements. You will also need to have submitted the required quarterly updates before you can complete your 2026/27 tax return under the new system.
MTD for Income Tax doesn’t have to be scary
We understand why MTD might feel like a big change.
There are new rules, new software and more regular reporting. However, getting organised early makes a huge difference.
That’s exactly what we did with our clients.
We contacted them in advance, explained what was changing and helped them prepare for their first quarterly submission.
As a result, every one of our clients’ Quarter 1 submissions was filed on time.
No last-minute panic. No frantic paperwork hunt. Just a process that everyone understood.
Don’t wait for HMRC
If you think MTD applies to you, don’t wait for HMRC to send you a letter.
Getting prepared now gives you time to check your circumstances, choose the right software and understand what you need to do.
Most importantly, you don’t have to figure it all out alone.
MTD is much easier when you have a plan.
At JDH, we’ve already helped our clients through their first MTD quarterly submission. So, if you’re unsure whether MTD applies to you or you’re worried about what you need to do next, get in touch with us.
We’ll help you understand what’s required and take the stress out of getting ready.
Because MTD might be digital, but getting it right doesn’t have to be complicated.
Source: HMRC announcement reported by AccountingWEB, 12 August 2026.