Who can't yet sign up for MTD IT?

Making Tax Digital for Income Tax (MTD IT) becomes mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. However, HMRC’s current guidance makes clear that not everyone can sign up yet. If you are preparing early, are you actually eligible?

According to HMRC’s sign-up guidance, certain taxpayers are currently excluded from joining MTD IT. These include individuals who:

are members of a partnership
are subject to bankruptcy or an individual voluntary arrangement
have certain complex tax affairs that the system does not yet support
do not meet the digital and identity verification requirements.

In addition, some taxpayers with particular reporting needs may find that the service cannot yet accommodate their circumstances.

HMRC has indicated that functionality is being expanded in stages. If you attempt to sign up and are not eligible, your application will be rejected and you will remain within self-assessment.

This does not remove the obligation to join when mandation applies and your circumstances fall within scope. As 6 April 2026 approaches, you should review both your income level and your eligibility under HMRC’s current criteria before attempting to enrol. Checking the guidance in advance can prevent delays and confusion during the transition to digital reporting.

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If you would like any assistance with any of these points.

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