Manual MTD sign up won’t remove taxpayer responsibility

12 August, 2026

HMRC’s decision to manually sign up taxpayers in the scope of Making Tax Digital shows the scheme is “not optional”, but those affected must not assume everything has been taken care of for them, cautions the Association of Taxation Technicians (ATT).

In an announcement today,1 HMRC said that, from September, it will begin signing up customers that need to use MTD for the 2026 to 2027 tax year but have yet to sign up themselves.

The ATT says while this will help ensure everyone affected is registered for the scheme, taxpayers may find it easier to navigate if they sign up themselves ahead of time.

Emma Rawson, Director of Public Policy for the Association of Taxation Technicians, said:

“HMRC’s decision to begin signing up taxpayers who should already be in Making Tax Digital (MTD) sends a clear message that MTD is not optional.

"But those who are signed up by HMRC should not assume that everything has been taken care of for them. It is important to check that HMRC’s records are accurate, particularly where businesses have ceased, circumstances have changed or an exemption may apply.

"Anyone who believes they are within scope of MTD but has not yet signed up should consider taking action now rather than waiting to hear from HMRC. Registering directly, or through an agent, gives taxpayers greater control over the process and more time to ensure they have the right software, digital records and systems in place before their MTD obligations come fully into effect.”

HMRC also revealed that more than 436,000 sole traders and landlords successfully submitted their first quarterly update ahead of the deadline on 7 August. More than 860,000 were expected to be in the scope of the scheme this year, but no penalties will not come in until April next year. 

Emma Rawson added:

“It was inevitable, given the scale and nature of the change involved in the move to MTD, that not everyone in scope would register in time or meet the first deadline.

"While HMRC are pleased with the statistics released today, they do highlight the amount of work that needs to be done to ensure those who are due to join MTD in April 2027 and 2028 are ready. Especially as these populations will be on lower incomes, and are less likely to have a tax agent handling their affairs.”

Notes for editors:

  1. HMRC press release: 436,000 sole traders and landlords make their tax digital.