HMRC to Automatically Register 294,000 Taxpayers for MTD from September: What You Need to Know

If you are one of the thousands of sole traders or landlords eligible for Making Tax Digital (MTD) for Income Tax who hasn't enrolled yet, the goalposts have just shifted.

HMRC has officially announced that starting from September, they will begin automatically signing up eligible taxpayers who have not yet registered themselves for the tax year.

This marks a significant change in HMRC’s strategy, transitioning from voluntary onboarding to direct intervention. Here is what this development means for you, and why taking control of your registration now is far better than waiting for the tax office to do it for you.

What HMRC Has Announced

In an unprecedented move, HMRC confirmed it will actively enrol taxpayers who meet the £50,000 income threshold but have failed to register independently.According to the official statement from HMRC:

"From September, HMRC will begin signing up customers who should be using MTD for the tax year but have not yet done so, helping them meet their requirements. This will happen in stages over the coming months.""Customers can avoid this by signing up now... Those who sign up themselves can make sure their MTD details are correct from the start and prepare in their own time, rather than waiting to be contacted by HMRC."

With roughly 294,000 taxpayers still unregistered across the UK, HMRC is using automatic enrolment to force the transition to digital record-keeping.

Looking for step-by-step guidance, timelines, or checklists?

Visit our dedicated Harris & Co Making Tax Digital Resource Hub for practical insights, software advice, and support guides to help you navigate the changes with confidence.

Why Waiting for HMRC Auto-Enrolment Is a Risk

While auto-enrolment might sound like a convenient shortcut, letting HMRC handle your registration comes with distinct drawbacks:

• No Choice Over Configuration: When you sign up yourself, you choose the software platform that best suits your daily business workflow. If HMRC automatically registers you, you still have to set up software quickly to meet your obligations, but under tight time limits.
• Risk of Incorrect Account Details: HMRC’s automated processes rely on historical data from past returns. Independent registration allows us to verify your current income streams, accounting periods, and business setups to ensure your MTD account is accurate from day one.
• Rushed Software Onboarding: Once HMRC notifies you that you have been auto-enrolled, the clock starts ticking immediately on your digital quarterly submission. Signing up on your own terms allows for a smooth, stress-free transition.

How the Team at Harris & Co Can Help You Take Control

For over 30 years, Harris & Co has helped small businesses, sole traders, and landlords navigate major tax changes with ease. As accredited Xero Platinum Partners, our dedicated digital team knows cloud accounting software inside out and will ensure your transition is seamless, compliant, and tailored to your business.

You don't need to navigate software choices, HMRC portals, or complex exemptions on your own. Our goal is to take the hassle out of tax so you can focus on running your business.

A Note from Phil Harris FCA, Founder & CEO:

"HMRC's decision to automatically register taxpayers shows just how serious they are about enforcing MTD. But letting the tax office dictate your setup is never the best approach.

My team and I are here to make sure you stay firmly in the driver’s seat. We will review your numbers to see if you genuinely fall into scope, get you onboarded onto straightforward digital software, and handle the entire registration process properly. We handle the technicalities so you never have to worry about surprise HMRC letters."

Our Step-by-Step MTD Support Package

• Threshold & Exemption Audit: We review your qualifying gross income to confirm whether you need to register now or if you qualify for an exemption.
• Software Selection & Setup: As Xero Platinum Partners, we set you up on user-friendly, HMRC-compatible software tailored to your specific business or property portfolio.
• Seamless HMRC Registration: We register your business directly with HMRC as your authorised agent, guaranteeing all information is correct from the start.
• Ongoing Quarterly Submissions: We prepare, review, and submit your quarterly digital updates on your behalf so you stay fully compliant year-round.

Don't Wait for HMRC to Act

Taking proactive steps today ensures your digital accounting is configured smoothly on your own schedule, not under pressure from an HMRC notice.

Get in touch with the Harris & Co team today on 01604 660661 or drop us a message to get your MTD registration sorted smoothly.