MTD Knowledge Base
Automatically signed up for MTD by HMRC? What it means and what to do next
HMRC may sign some taxpayers up to Making Tax Digital automatically from September 2026. That does not connect TidGo, Xero, FreeAgent or any other software.
The short version
If HMRC sends you a letter saying you have been automatically signed up for Making Tax Digital for Income Tax, it means HMRC has put you into the MTD system because your latest Self Assessment return shows qualifying income above the threshold.
Automatic sign-up does not connect TidGo, Xero, FreeAgent or any other application. You still need to choose compatible software, connect it to HMRC, keep digital records and send any quarterly updates that are due.
HMRC enrolment is not software authorisation
HMRC enrolment means HMRC decides you are in MTD and creates obligations for you. Software authorisation is separate: you open your chosen software, choose “connect to HMRC”, sign in with Government Gateway or GOV.UK One Login, and give permission for that software to talk to HMRC.
What to do after receiving the letter
- Read the HMRC letter carefully and check the tax year and income threshold.
- Log in to HMRC online services and check your Self Assessment and MTD details.
- Choose compatible software or speak to your accountant.
- Authorise the software through HMRC using the connect flow.
- Check open obligations and catch up on any missed quarterly updates.
If you missed the 7 August 2026 deadline, no penalty points apply for late quarterly updates in 2026/27, but missed updates still need to be submitted before the year-end return.
A note on accountants — the real ones, not apps
TidGo collects and organises your records. It does not replace your accountant — and it doesn't try to. Real tax responsibility belongs in professional hands.
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Think of it this way: TidGo tidies the house before the accountant arrives. What they find when they get there — that's their magic, not ours.
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