How to Register for MTD for Income Tax: Step-by-Step Guide (2026)

Making Tax Digital for Income Tax (MTD for ITSA) launches on 6 April 2026. If your gross income from self-employment or property is over £50,000, you are legally required to be registered and using compatible software from that date.

This guide walks you through exactly how to register — step by step — so you are not scrambling at the last minute.

Who Needs to Register?

From 6 April 2026, MTD for Income Tax is mandatory if you have:

• Self-employment income above £50,000 (gross, before expenses)
• Property rental income above £50,000 (gross, before expenses)
• A combination of self-employment and rental income that together exceeds £50,000

From April 2027, the threshold drops to £30,000 — and from April 2028, to £20,000. So even if you are not affected in 2026, you likely will be soon.

What Happens If You Do Not Register?

HMRC has announced a 12-month penalty grace period for Year 1 (2026/27), which means you will not receive late-filing penalties during the first year. However, the requirement to register and use MTD-compatible software is still mandatory from April 2026. Ignoring it entirely risks:

• Penalty points accumulating on your tax record
• Financial penalties once the grace period ends (from April 2027)
• Having to do catch-up quarterly submissions retrospectively

HMRC’s advice is clear: register early, not at the deadline.

What You Will Need Before Registering

Before you start the registration process, make sure you have the following ready:

• Your Government Gateway login (National Insurance number + password). If you do not have one, create it at gov.uk first — this alone can take several days if HMRC needs to post you an activation code.
• Your UTR (Unique Taxpayer Reference) — found on previous Self Assessment returns or your HMRC online account.
• National Insurance number
• MTD-compatible software already chosen and set up (more on this below)
• Your accounting period start date — typically 6 April if you use the tax year basis

Step-by-Step: How to Register for MTD for Income Tax

Step 1: Choose Your MTD-Compatible Software

You cannot register for MTD until you have chosen software, because HMRC links your registration to a software provider. The main options for landlords and sole traders are:

• Xero — best for businesses with employees or complex needs
• QuickBooks — good for sole traders, strong mobile app
• FreeAgent — popular with sole traders and contractors
• HMRC’s own list of approved software at gov.uk/government/publications/making-tax-digital-for-income-tax-software-suppliers

If you are a landlord with a simple property portfolio, even a spreadsheet connected to bridging software may qualify — but dedicated accountancy software is more reliable and will save you time in the long run.

Step 2: Sign In to Your HMRC Online Account

Go to gov.uk and sign in to your personal tax account using your Government Gateway credentials. If you use an accountant, they may handle registration on your behalf using their Agent Services Account — but you still need to authorise them first.

Step 3: Navigate to the MTD for Income Tax Sign-Up

Within your HMRC online account, look for Making Tax Digital for Income Tax under your Self Assessment section. HMRC is rolling out invitations, so you may receive a direct link by email. You can also search gov.uk for “sign up for Making Tax Digital for Income Tax” to find the current sign-up page.

Step 4: Confirm Your Income Sources

HMRC will ask you to confirm your income sources — self-employment, property, or both. You will need to confirm your gross income exceeds the threshold. Be accurate: declaring lower than actual income to avoid MTD is not a valid exemption and could trigger a compliance check.

Step 5: Select Your Software

You will be asked to connect your chosen software provider to your HMRC account. This is typically done via an authorisation link within the software itself — log in to Xero or QuickBooks, go to the MTD or HMRC connection settings, and follow the prompts to link the accounts.

Step 6: Confirm Your Accounting Period

Most individuals will use the tax year basis (6 April to 5 April). If you have a different accounting period as a sole trader, HMRC may require you to transition — this is known as the basis period reform and it is largely complete, but worth confirming with an accountant if you are unsure.

Step 7: Receive Your MTD Confirmation

Once registered, HMRC will confirm your MTD status. You are now required to:

• Keep digital records of all income and expenses
• Submit a quarterly update to HMRC (due 7 August, 7 November, 7 February, 7 May)
• Submit an annual End of Period Statement and Final Declaration to confirm your total income

What Are the Quarterly Deadlines?

Quarter	Period Covered	Submission Deadline
Q1	6 April – 5 July	7 August
Q2	6 July – 5 October	7 November
Q3	6 October – 5 January	7 February
Q4	6 January – 5 April	7 May

Can You Claim an Exemption?

HMRC does allow certain exemptions from MTD. You may qualify if:

• You are digitally excluded (no internet access or unable to use digital tools due to age, disability, or remoteness)
• Your religion prevents you from using electronic communications
• It is not reasonably practicable for you to use digital tools

Exemptions must be applied for through HMRC and are not automatically granted. Simply preferring paper records does not qualify.

Should You Use an Accountant to Register?

You can register yourself if you are comfortable with your HMRC online account and software. However, many landlords and sole traders choose to use an accountant because:

• An accountant can register on your behalf through the Agent Services Account
• They will set up your software correctly from day one
• They handle the quarterly submissions for you
• They ensure your records meet HMRC’s digital record-keeping requirements
• They can advise on expenses and tax planning to reduce your bill

The cost of getting MTD wrong — penalties, amendments, and HMRC investigations — typically far outweighs the cost of professional help.

---

Need help registering for MTD? At HS Global Accountancy, we handle the entire MTD registration and quarterly submission process for landlords and sole traders across the UK. Get a free quote or contact us today.