MTD – HMRC to start signing up non-enrolled clients

HMRC has announced that commencing September 2026 they will sign up taxpayers who fall within the scope of MTD from April 2026 but have not yet enrolled.  Taxpayers and where appropriate agents, are encouraged to act before HMRC does.

HMRC has reported that more than 436,000 sole traders and landlords have submitted their first MTD quarterly return compared to 570,000 taxpayers who signed up.  HMRC indicated previously that it expected around 864,000 taxpayers would be required to join MTD from April 2026.

HMRC plans to sign up those taxpayers yet to act in batches from September 2026.  Once signed up by HMRC those taxpayers effected will receive a letter or email from HMRC advising the next steps they need to take including logging into their personal/business tax account to check that HMRC’s records are up to date.  Should the business no longer be active, taxpayers will have the option to remove the business (or add any new businesses).

HMRC is advising taxpayers to sign up for MTD now and not wait for HMRC to do it for them.  Fewer details can be corrected online if HMRC complete the sign up process resulting in taxpayers having to contact HMRC directly to make amendments.

Once signed up taxpayers will need to catch up on any quarterly submissions that have been missed.  The first submission was due 7 August 2026.

Only the taxpayer will receive a communication from HMRC, they will not write to tax agents so it is important to pass on any correspondence received.

HMRC will publish further guidance in late August to those taxpayers that receive a letter about being signed up.

Please contact us if you need any further information.