Do I need to sign up for Making Tax Digital for Income Tax, or is it automatic?
You will need to sign up yourself. HMRC will not automatically enrol you into Making Tax Digital (MTD) for Income Tax.
Even if you’re required to use MTD, you must complete a separate sign-up process before you can submit updates using software.
Is Making Tax Digital for Income Tax automatic?
No. HMRC has confirmed that:
- They will not automatically sign you up for MTD for Income Tax
- You are responsible for registering before your deadline
According to HMRC guidance, “we won’t sign you up automatically – it’s important to sign up as soon as possible” (source).
This applies even if:
- You already submit a Self Assessment tax return
- You are registered for MTD for VAT
- HMRC has contacted you about MTD
Being eligible does not mean you are enrolled.
Will HMRC contact me?
Yes, HMRC may send you a letter if they believe you need to use MTD based on your income.
For example, if your income is above the threshold, HMRC will write to confirm when you need to start using MTD.
However, even if you receive a letter, you still need to sign up yourself. HMRC makes it clear that:
- You must check if MTD applies to you
- You must register before you start using it
If you don’t receive a letter, it is still your responsibility to check and sign up if required.
When do I need to sign up?
You should sign up before your MTD start date.
From HMRC guidance:
- MTD for Income Tax becomes mandatory from 6 April 2026 for those earning over £50,000
- You should sign up in advance so everything is ready
You can also sign up early (voluntarily) if you want to get familiar with the system.
What happens if I don’t sign up?
If you are required to use MTD but do not sign up:
- You will not be able to submit your updates through MTD software
- You may risk penalties once MTD rules apply to you
This is why HMRC encourages signing up ahead of time.
What do I need to sign up?
To sign up for MTD for Income Tax, you’ll typically need:
- Your National Insurance number
- Your Government Gateway account (personal account for Income Tax)
- To have submitted at least one Self Assessment tax return
You’ll also need software that works with MTD once you start submitting updates, like MTDsorted.