If your qualifying income puts you in scope for Making Tax Digital for Income Tax, signing up is a required step. You cannot just buy software and start filing — you must formally register with HMRC and authorise your software to act on your behalf. This guide walks through the process from start to finish.
When to Sign Up
You should register for MTD for Income Tax before the tax year in which you become required to use it.
| If your qualifying income is over | You must use MTD from | Sign up by |
|---|---|---|
| £50,000 | 6 April 2026 | As soon as possible |
| £30,000 | 6 April 2027 | Before 6 April 2027 |
| £20,000 | 6 April 2028 | Before 6 April 2028 |
You can also sign up voluntarily before your mandate date. This is useful for testing the system and submitting a few practice quarterly updates. See our MTD readiness checklist for what to do before you sign up.
What You Need Before You Register
Make sure all of the following are in place before you start the registration process.
1. Self Assessment registration
You must be registered for Self Assessment and have submitted a tax return in the last 2 years. If you are not yet registered, register with HMRC first — this can take several weeks.
2. Your Government Gateway login
You will need the same user ID and password you use to access your Personal Tax Account and Self Assessment. If you have forgotten them, see our locked out of Government Gateway guide.
3. HMRC-compatible software
HMRC does not provide free MTD software. You must choose a compatible product before you sign up. Options include full accounting software like FreeAgent, Xero, QuickBooks, Sage, Coconut and Account OS (AI accounting for UK micro-businesses), or spreadsheet bridging tools. See our cheapest MTD software guide and spreadsheets for MTD guide. Check that your chosen software appears on HMRC’s list of MTD-compatible software.
4. Your business details
Gather the following:
- Your business start date, or the date you started receiving property income
- Your business name (the name on your invoices)
- Your business address
- The nature of your business or trade
- The tax year you want to start using MTD
If you have more than one self-employment or property income source, check each one in the service and add any that are missing.
5. Proof of identity
You may need to prove your identity during sign-up. HMRC may ask you to:
- Use a mobile phone app to match your face to your passport or driving licence
- Answer questions based on information HMRC already holds, such as passport, driving licence, P60 or payslip details
Step-by-Step Registration
Step 1: Check if you are eligible
Before you register, confirm that:
- Your qualifying income is above the threshold for your start year
- You are not exempt from MTD
- You have submitted a Self Assessment tax return in the last 2 years
Use our MTD qualifying income calculator to check whether you need to register.
Step 2: Check if you may be exempt
If your qualifying income is £20,000 or below, you are automatically exempt and do not need to register. Other exemptions apply for certain roles, age, disability, religious belief and location. See our MTD exemptions guide for full details.
Step 3: Choose and set up your software
Set up your chosen MTD-compatible software before you register. During registration, HMRC will ask you to authorise the software to interact with your tax account. Having it installed and logged in makes this much easier.
Step 4: Go to HMRC’s sign-up service
Use the official GOV.UK sign-up service with your Self Assessment Government Gateway login. There is no other way to register. Do not use third-party links.
Step 5: Enter your income sources
In the online service, tell HMRC about your:
- Self-employment income
- UK property income
- Any income sources that have ceased since your last tax return
If all your self-employment or property income has ceased, you should tell HMRC before the start of the next tax year so you are not signed up unnecessarily.
Step 6: Confirm your start year
Confirm the tax year from which you will start using MTD. If you are required from 6 April 2026, choose 2026 to 2027. If you are signing up voluntarily, you can choose the current year or the next one.
Step 7: Prove your identity (if asked)
If HMRC cannot verify you automatically, complete the identity check using the app or questions. This is a one-off step and usually takes only a few minutes.
Step 8: Authorise your software
After signing up, you must authorise your software to access your MTD account. Your software will provide a link or button to start this. You will be taken to HMRC, where you confirm the connection. This is called granting authority to interact with HMRC’s API.
Step 9: Check your confirmation
HMRC will send confirmation that you are signed up. This may appear in your HMRC online account or by post. Keep this for your records.
Step 10: Submit your first quarterly update
Once registered and authorised, your software can submit quarterly updates. The first quarterly update for the 2026 to 2027 tax year covers the period 6 April 2026 to 5 July 2026 and is due by 7 August 2026. See our MTD quarterly updates guide for the full deadlines.
Troubleshooting: Common Registration Problems
HMRC cannot verify your identity
If the automatic identity check fails, don’t abandon the process. You have two fallback options:
- Answer security questions. HMRC will ask questions based on information it already holds — passport details, driving licence number, P60 figures, or payslip information. Answer as many as you can. One wrong answer doesn’t necessarily fail the check.
- Contact HMRC by phone. If the questions don’t work either, call HMRC’s Self Assessment helpline. They can verify your identity over the phone and unblock the online process. Have your UTR and National Insurance number ready. See our can’t access Self Assessment guide for contact details.
You can’t find your income sources in the sign-up service
The sign-up service shows income sources HMRC already knows about from your previous Self Assessment returns. If a source is missing:
- You started a new business this year: HMRC won’t show it until you’ve filed a Self Assessment return that includes it. Add it manually during sign-up if the service allows, or file your next return first and then sign up.
- Your business name or details have changed: HMRC shows the details from your last return. You can update them during the sign-up process or after registration through your HMRC online account.
- You have multiple trades: Check each one. If a trade is missing, you may need to add it manually. See our MTD with multiple trades guide for how multiple income sources interact with MTD.
Software authorisation fails
After signing up, you authorise your software to connect to HMRC. If this fails:
- “Save business failed” or similar error: This is almost always an HMRC-side issue, not a software problem. The cause is usually that you haven’t completed the MTD sign-up, you’re using the wrong Government Gateway credentials, or your National Insurance number doesn’t match HMRC’s records. See our Starling Accounting MTD link failed guide — the troubleshooting steps apply to most software, not just Starling.
- The authorisation page won’t load: Try a different browser or clear your cookies. HMRC’s authorisation pages can be sensitive to browser state.
- You’re stuck in a loop between software and HMRC: This usually means the software hasn’t been fully set up before you tried to authorise. Complete the software setup first (create your business profile, set your tax year), then retry the authorisation.
You registered but nothing happened
HMRC’s confirmation can take up to 7 days to arrive. If you haven’t received confirmation after 7 days:
- Check your HMRC online account — the confirmation may be there rather than by post or email.
- Check your spam/junk folder for email confirmation.
- Contact HMRC if you still can’t find it. Don’t try to register again — this can create duplicate registrations.
If You Do Not Register Yourself
From September 2026, HMRC will begin signing up taxpayers who have not yet registered and are required to use MTD for 2026 to 2027. If HMRC signs you up, it will use the information it already holds. This may not include recent changes such as:
- A new business
- A business you have stopped
- A change of address
- A change of business name
If any of these are missing or wrong, you may need to update your details or contact HMRC. Signing up yourself is the safer option — you control the information HMRC uses.
What Happens If You Are Late to Register
If you are required to use MTD and do not register or sign up, you cannot submit your quarterly updates or final declaration through MTD-compatible software. This may lead to:
- Missed quarterly updates
- A late final declaration
- Late payment interest and penalties
For the current penalty rules, see our MTD penalties guide. The 2026/27 grace period means no penalty points for late quarterly updates, but late final declarations and late payment are still penalised.
The Bottom Line
Registering for MTD is a one-off administrative task. The key is to do it early, before your start date, with the right software and business details ready. Once registered and authorised, your software can submit quarterly updates and your final declaration for as long as you need it. If you hit problems during registration — identity verification, missing income sources, or software authorisation failures — don’t abandon the process. Every common problem has a fix, and HMRC’s helpline can unblock you if the online process stalls.
For the complete end-to-end filing walkthrough, see our how to file MTD guide. For the complete MTD overview, see our Making Tax Digital guide. For preparation steps, see our MTD readiness checklist. For threshold details, see MTD qualifying income thresholds.