How to Register for MTD for VAT: Step-by-Step Guide

Last updated: March 2026

If your business is VAT-registered, you must use Making Tax Digital compatible software to keep digital records and submit your VAT return to HMRC. This guide walks you through the full registration process for MTD for VAT, step by step.

Since April 2022, all VAT-registered businesses must comply with Making Tax Digital for VAT, regardless of turnover. If you have a VAT registration number and file VAT returns, you need to be signed up.

Who needs to register for MTD for VAT?

You must register for Making Tax Digital for VAT if your business is VAT-registered. This applies whether your taxable turnover is above or below the £90,000 VAT registration threshold.

Since April 2022, this covers:

• Sole traders who are VAT-registered
• Limited companies with a VAT registration number
• Partnerships registered for VAT
• Any other VAT-registered businesses, including charities and trusts

If you voluntarily registered for VAT (with turnover below the threshold), you still need to use MTD-compatible software to submit your VAT return.

Before you register: what you need

Before you sign up for Making Tax Digital for VAT, make sure you have:

1. A Government Gateway account — this is the login you use for HMRC online services. If you don’t have one, create it at gov.uk
2. Your VAT registration number — the 9-digit number on your VAT certificate
3. MTD-compatible software — you cannot use the HMRC portal once signed up. See our guide to the best MTD VAT software
4. Your last VAT return details — specifically the Box 5 figure (net VAT) from your most recent return, plus the month it covered
5. Your business email address

Step-by-step: how to register for MTD for VAT

Step 1: Choose your MTD-compatible software

You need compatible software that can keep digital records and submit VAT returns directly to HMRC. HMRC publishes a list of recognised software on gov.uk. Popular options include Xero, QuickBooks, FreeAgent, and Sage.

If you currently use spreadsheets, you can continue to do so through MTD bridging software, which links your spreadsheet to HMRC’s systems.

Step 2: Sign up on gov.uk

Go to the HMRC sign-up page for MTD for VAT. You will need to:

1. Log in with your Government Gateway credentials
2. Confirm your VAT registration number
3. Verify your identity using the Box 5 figure from your last return
4. Choose your MTD-compatible software from the list

HMRC typically confirms your registration within 72 hours, though it can take up to 7 days.

Step 3: Connect your software to HMRC

Once HMRC confirms your registration, open your chosen software and authorise it to connect to HMRC. This usually involves:

1. Going to the MTD or VAT settings in your software
2. Clicking “Connect to HMRC” or similar
3. Logging in with your Government Gateway details
4. Granting permission for the software to submit on your behalf

This creates a secure digital link between your software and HMRC.

Step 4: Keep digital records going forward

From the date you register, you must keep digital records of all your sales and purchases. Your software should capture:

• The date, value, and VAT rate for each transaction
• Your business name and VAT registration number
• Any adjustments or corrections

Step 5: Submit your next VAT return through software

When your next VAT return is due, use your software to submit it directly to HMRC. You can no longer use the HMRC online portal once registered for MTD for VAT.

Registering through an agent or accountant

If you use an accountant, they can register you for MTD for VAT using their agent services account. Your accountant needs:

• An agent services account (separate from their main Government Gateway)
• Your written authorisation to act on your behalf
• Your VAT registration number

Most accountants handle the entire process, including connecting the software and submitting your first return. If your accountant already files your VAT returns, ask them to set up agent authorisation for MTD.

Worked example: registering a small plumbing business

What VAT-registered businesses need to know

All VAT-registered businesses must register for Making Tax Digital for VAT and use software to submit their VAT returns. This applies regardless of whether your taxable turnover is above or below the £90,000 VAT registration threshold. If you are already VAT-registered with a valid VAT registration number, you must sign up for Making Tax Digital.

You need to use accounting software or bridging software that connects to HMRC’s systems. You cannot continue to use the HMRC online portal once you have registered for MTD for VAT. The software must keep digital records of all your transactions and maintain digital links between your records and the VAT return you submit to HMRC.

If you need to register for VAT and Making Tax Digital at the same time, complete your VAT registration first. Once HMRC issues your VAT registration number, you can then sign up for MTD for VAT using your Government Gateway account. The entire process — from VAT registration to MTD sign-up — typically takes 2–3 weeks.

Common registration issues

Box 5 verification fails

If HMRC rejects your Box 5 figure, check you’re entering the net VAT amount (not the gross) from your most recent return. The figure must match exactly, including pence.

Already signed up but can’t submit

If you registered but your software cannot submit, check that you’ve authorised the software connection. The authorisation link between HMRC and your software expires after 18 months and needs renewing.

Switching from the HMRC portal

Once you’re registered for MTD for VAT, you cannot go back to filing through the HMRC online portal. Make sure your compatible software is set up and tested before your next return is due.

MTD for VAT vs MTD for Income Tax

MTD for VAT and Making Tax Digital for Income Tax are separate obligations. Being registered for MTD for VAT does not automatically sign you up for MTD for Income Tax, which begins in April 2026 for those with qualifying income above £50,000.

If you are both VAT-registered and self-employed (or a landlord), you may need to comply with both. See our guide to how MTD for VAT and Income Tax interact.

Frequently asked questions

Do I need to register for MTD for VAT if my turnover is below the threshold?

Yes. Since April 2022, all VAT-registered businesses must use MTD for VAT, regardless of their taxable turnover. If you voluntarily registered for VAT, you must still comply.

Can I register for MTD for VAT myself or do I need an accountant?

You can register yourself on gov.uk using your Government Gateway account and VAT registration number. An accountant is not required, though many businesses find it helpful to have their accountant handle the setup.

How long does MTD for VAT registration take?

HMRC typically confirms your registration within 72 hours, though it can take up to 7 working days. You can continue filing through the portal until your registration is confirmed.

What happens if I don’t register for MTD for VAT?

HMRC can charge penalties for non-compliance. You may receive a letter requiring you to sign up by a specific date. If you continue to file outside MTD, your returns may not be accepted.

Is there free software for MTD for VAT?

HMRC’s own free tool only covers MTD for Income Tax, not VAT. However, some providers like free MTD software options offer low-cost or free tiers for very small businesses.