How to Sign Up for MTD with HMRC: Step-by-Step Guide
Before you can submit quarterly updates under Making Tax Digital for Income Tax, you need to sign up with HMRC. The process is straightforward but there are a few things you need to have ready.
This guide walks you through the entire sign-up process, from what you need before you start to what to do once you are registered.
Who Needs to Sign Up
MTD for Income Tax is mandatory if your qualifying gross income from self-employment and/or property exceeds £50,000 (from April 2026) or £30,000 (from April 2027).
If you are unsure whether you meet the threshold, check our guide on whether you need MTD software. If you know you are exempt, you do not need to sign up.
What You Need Before You Start
Make sure you have the following:
- Government Gateway ID and password — this is the same login you use for Self Assessment online. If you file your own tax return through the HMRC website, you already have one.
- National Insurance number — found on your payslip, P60, or any letter from HMRC.
- Your business start date (for self-employment) or the date you started receiving rental income.
- Unique Taxpayer Reference (UTR) — the 10-digit number HMRC assigned when you registered for Self Assessment.
- MTD-compatible software already chosen — HMRC asks which software you will use during sign-up. See our MTD software comparison if you have not chosen yet.
If you do not have a Government Gateway account, you will need to create one first at gov.uk. Allow a few days for this — HMRC may need to verify your identity by post.
Step-by-Step Sign-Up Process
Step 1: Go to the HMRC sign-up page
Navigate to the HMRC MTD for Income Tax sign-up service. You can find this by searching "sign up for Making Tax Digital for Income Tax" on gov.uk, or go directly to the sign-up service through your Government Gateway account.
Step 2: Sign in with Government Gateway
Use your existing Government Gateway credentials. You will need both the user ID and password. If you have forgotten either, HMRC provides a recovery process — but this can take time, so do not leave it until the last minute.
Step 3: Confirm your details
HMRC will display your name, National Insurance number, and Unique Taxpayer Reference (UTR). Check these are correct. If anything is wrong, you need to update your details with HMRC before proceeding — do not complete sign-up with incorrect information.
Step 4: Select your income sources
Tell HMRC whether you have: - Self-employment income - Property income (rental) - Both
You need to select all sources that apply. If you have multiple self-employments or multiple properties, you will need to account for each. For example, if you are a freelancer who also rents out a flat, select both self-employment and property income.
If you have a second income alongside employment, only the self-employment and property portions are relevant here.
Step 5: Provide business details
For each self-employment, you will need to confirm: - The nature of your business (trade) - Your business start date - Your business address (if different from your home)
For property income, HMRC will ask about the type of property letting and when it started.
Step 6: Choose your software
HMRC will ask which MTD-compatible software you plan to use. Select from the list of recognised software providers. If you have not chosen yet, our software comparison covers the main options, or see our guide to the best MTD software for sole traders.
Step 7: Confirm and complete
Review your details and submit. HMRC will confirm your sign-up, and you will be ready to start submitting quarterly updates through your chosen software.
You should receive confirmation on screen immediately, and a confirmation message in your Government Gateway inbox.
Signing Up Through an Accountant
If you have an accountant or tax agent, they can handle the sign-up for you. However, they need specific authorisation:
- Existing Self Assessment authorisation is not enough — your agent needs separate MTD for Income Tax authorisation
- Your agent must have an agent services account with HMRC
- You will need to authorise them specifically for MTD for ITSA
If your accountant asks you to approve a new authorisation request, this is why. The process is:
- Your accountant initiates the sign-up through their agent services account
- HMRC sends you an authorisation request
- You approve the request through your Government Gateway account
- Your accountant completes the sign-up
If you are unsure whether your accountant has completed this, ask them directly. The obligation to comply with MTD is yours as the taxpayer — if your agent has not signed you up and you miss a deadline, the penalty falls on you.
For more on whether you need an accountant for MTD, see our guide on MTD: do you need an accountant?.
When to Sign Up
If your qualifying income is above £50,000, you should already be signed up. MTD for Income Tax went live on 6 April 2026, and your first quarterly update is due by 7 August 2026.
If your income is between £30,000 and £50,000, you do not need to comply until April 2027, but signing up early and getting familiar with the process is advisable. You can register voluntarily to get a head start.
The first-year soft landing
If you are concerned about making mistakes in your first year, note that HMRC is offering a soft landing for 2026/27. Penalty points for late quarterly submissions are waived during the first year. This does not remove the obligation to sign up and submit — but it does mean honest mistakes will not result in fines.
Common Issues During Sign-Up
"I do not have a Government Gateway account"
You need to register for one at gov.uk. The process requires your National Insurance number and some form of identity verification. If HMRC verifies by post, expect a letter within 7-10 working days containing an activation code. Start this process well before your first quarterly deadline.
"My details are wrong"
If HMRC displays incorrect information during sign-up — wrong address, wrong UTR, or a name change not reflected — you may need to update your personal details with HMRC before proceeding. Call the Self Assessment helpline or update through your personal tax account online.
"The sign-up service is not available"
HMRC's online services occasionally have downtime, particularly at weekends and during maintenance windows. If the service is unavailable, try again during normal business hours. HMRC publishes planned downtime on their service availability page.
"I am not sure if I need to sign up"
Check our guide on who needs MTD and MTD exemptions. The key test is whether your qualifying gross income from self-employment and/or property exceeded £50,000 in the 2024/25 tax year. See our detailed breakdown of the MTD income threshold.
"My accountant says they will handle it"
That is fine — but make sure they have done it. Ask your accountant to confirm that your MTD for Income Tax sign-up is complete and that they have the necessary authorisation. Do not assume it has been done without checking.
"I already signed up for MTD for VAT"
MTD for VAT and MTD for Income Tax are separate programmes with separate sign-up processes. You need to sign up for MTD for Income Tax even if you are already registered for MTD for VAT.
After Sign-Up
Once you are signed up, you need to:
- Connect your MTD software to HMRC — this is a one-time authorisation step in your software where you grant it permission to submit to HMRC on your behalf
- Start keeping digital records of your income and expenses — paper records alone are no longer sufficient
- Submit your first quarterly update before the Q1 deadline of 7 August 2026 — see our first quarterly update guide for a walkthrough
If you later decide your software is not the right fit, you can switch MTD software at any time without affecting your HMRC sign-up or submission history.
Voluntary Sign-Up
If your income is below the current threshold, you can still sign up for MTD voluntarily. The process is identical to mandatory sign-up — you go through the same steps above.
Voluntary registration is worth considering if your income is close to the threshold and likely to exceed it soon, or if you want to build the habit of quarterly reporting before it becomes compulsory.
For more on the pros and cons, see our guide to voluntary MTD registration.
What Happens If You Do Not Sign Up
If your qualifying income is above the threshold and you fail to sign up and submit quarterly updates, HMRC will eventually become aware — your Self Assessment return will show income above the threshold.
The consequences are: - Penalty points for each missed quarterly update (after the soft landing period ends) - A £200 fine once you accumulate four penalty points - Further £200 fines for each subsequent late submission - Potential interest and penalties on late payments
For full details on what happens if you file late, see our dedicated guide.
The sign-up process takes about 10 minutes. The important thing is to do it now rather than leaving it until your first deadline is approaching.
Frequently Asked Questions
How long does it take to sign up for MTD?
The sign-up process itself takes about 10 minutes if you have your Government Gateway credentials and National Insurance number ready. However, if you need to create a Government Gateway account first, allow a few extra days for HMRC to verify your identity.
Can my accountant sign me up for MTD?
Yes. Your accountant can sign you up using their agent services account. However, they need separate MTD for Income Tax authorisation — their existing Self Assessment authorisation is not sufficient. You will need to approve the new authorisation request.
Do I need to sign up for MTD if I am already registered for MTD for VAT?
Yes. MTD for VAT and MTD for Income Tax are completely separate programmes. Being registered for MTD for VAT does not satisfy your MTD for Income Tax obligations. You need to sign up separately.
What happens if I do not sign up for MTD?
If your qualifying income is above the threshold and you fail to sign up and submit quarterly updates, you may face penalty points and eventually fines under HMRC's points-based penalty system. The first year has a soft landing for quarterly submissions, but the obligation to sign up and comply still exists.
Can I sign up for MTD voluntarily if I am below the threshold?
Yes. If your qualifying income is below the current threshold, you can register voluntarily. This lets you get familiar with quarterly reporting before it becomes mandatory. However, once registered, you must comply with the submission schedule — the same penalty rules apply.
