How to Sign Up for MTD for Income Tax: Step-by-Step

Before You Sign Up: Check Your Eligibility

You must sign up for MTD for Income Tax if your qualifying income (gross self-employment and/or UK property income) exceeds:

• £50,000 -- mandatory from 6 April 2026
• £30,000 -- mandatory from April 2027
• £20,000 -- mandatory from April 2028

HMRC determines your mandation status using your most recent Self Assessment return. If your 2024/25 return shows qualifying income above £50,000, you need to act before the April 2026 deadline.

You can also sign up voluntarily at any time if your income is below these thresholds -- many taxpayers choose to do so to get organised early.

What counts as qualifying income?

Only gross sole trader self-employment income and UK property rental income count toward the threshold. Employment income, dividends, savings interest, and pension income are excluded from the calculation -- though you will still declare these through the Final Declaration at year end.

What You Need Before You Start

Gather the following before beginning the sign-up process:

1. Government Gateway credentials Your existing Self Assessment Government Gateway user ID and password. If you do not have one, register at GOV.UK first. Your account must be linked to your Self Assessment record -- a general HMRC account alone is not sufficient.

2. National Insurance number and Unique Taxpayer Reference (UTR) Your UTR is a 10-digit number found on previous correspondence from HMRC, or in your HMRC online account.

3. Business details For each self-employment or property business you have: the business name or description, the business start date, and (for self-employment) the business trading address.

4. Compatible software HMRC requires you to have chosen an MTD-compatible software product before completing sign-up. You can find the full list on HMRC's Software Choices page. Taxd is HMRC-recognised and walks you through the authorisation step automatically.

Step-by-Step: Signing Up as an Individual

Step 1 -- Log in to your HMRC online account Go to GOV.UK and sign in to Self Assessment using your Government Gateway user ID and password.

Step 2 -- Navigate to the MTD for Income Tax sign-up journey Select the option to register for Making Tax Digital for Income Tax. HMRC will ask you to confirm your name, National Insurance number, and the types of income you have (self-employment, property, or both).

Step 3 -- Add your income sources For each self-employment business, enter the business name and start date. For property income, confirm whether it is UK or foreign property. You can register multiple businesses if applicable.

One important exclusion: partnership income should not be included at this stage. Partnerships are currently outside the scope of MTD -- continue to report your partnership share through Self Assessment as normal.

Step 4 -- Choose your compatible software Select the MTD software product you will use to keep digital records and submit quarterly updates. HMRC links your sign-up to your chosen software.

Step 5 -- Authorise your software to connect to HMRC Your software will guide you through a short authorisation flow. You will be redirected to HMRC's website, asked to sign in again, and prompted to grant the software permission to interact with HMRC on your behalf using a secure protocol (OAuth 2.0). Once completed, your software stores a secure access token. You will not need to repeat this unless you switch software providers.

Step 6 -- Sign-up is complete HMRC will create your quarterly obligations for the current tax year. These appear in your software as four quarterly deadlines and a Final Declaration deadline of 31 January.

Signing Up Through a Tax Agent

If you use an accountant or tax adviser, they can sign you up on your behalf. Your agent must first:

1. Create an Agent Services Account on GOV.UK
2. Transfer your existing Self Assessment client authorisation (for existing clients) or request a new authorisation
3. Connect compatible software to your account

Speak to your agent before choosing software -- it is important that your software and your agent's software are compatible, particularly if your agent will be submitting quarterly updates on your behalf.

What Happens After You Sign Up?

Once registered, HMRC assigns quarterly obligations for the current tax year. Your software will show four submission windows and their due dates:

• Q1: 6 April to 5 July -- submit by 5 August
• Q2: 6 July to 5 October -- submit by 5 November
• Q3: 6 October to 5 January -- submit by 5 February
• Q4: 6 January to 5 April -- submit by 5 May

Each quarter, you submit a summary of income and expenses for each of your registered businesses. At the end of the tax year, you complete a Final Declaration by 31 January. This is the MTD equivalent of your annual Self Assessment return -- it is where you declare any other income (employment, dividends, savings interest, and so on) and claim allowances or reliefs.

Common Questions

Do I need to cancel my Self Assessment registration? No. MTD replaces the quarterly reporting element of Self Assessment, but the Final Declaration at year end functions in the same way as an annual return. HMRC will update your filing status automatically when you sign up.

Can I sign up mid-year? Yes. Your first quarterly obligation will still cover from 6 April of the current tax year. Your software will combine any periods you have already missed into the next available window -- though you may receive a late penalty point for submissions not made on time.

What if I have more than one self-employment business? Each business is registered separately and has its own quarterly update obligations. HMRC tracks compliance by individual business ID, so you must submit an update for each one.

What if my income falls below the threshold next year? HMRC reviews your status annually using your most recent return. If qualifying income drops below the threshold, you will be reclassified as a voluntary user. Your quarterly updates will no longer carry penalty points, though you can continue using MTD voluntarily.

Get Started with Taxd

Taxd is HMRC-recognised software trusted by landlords, sole traders, and expats across the UK and worldwide. When you sign up through Taxd, the Government Gateway authorisation is handled within the platform -- no separate HMRC navigation required. Start with a free trial and upgrade when you are ready to submit.