How to Sign Up for Making Tax Digital for Income Tax: Step-by-Step
Last updated: February 2026
If your qualifying income from self-employment or UK property exceeds the relevant threshold, you need to register for Making Tax Digital for Income Tax Self Assessment (MTD ITSA). This guide walks you through the entire process, whether you are signing up yourself or your accountant is handling it for you.
The first wave of mandatory sign-ups opens ahead of 6 April 2026 for anyone with qualifying income above £50,000. Registration is done through HMRC’s online services, and you will need a Government Gateway account to get started.
Who needs to register for MTD Income Tax
MTD ITSA applies to sole traders and landlords whose combined qualifying income crosses the threshold for their phase. Qualifying income means your gross self-employment income plus gross UK property income. It is based on turnover, not taxable profit, and both sources are added together.
| Phase | Start date | Qualifying income threshold |
|---|---|---|
| Phase 1 | 6 April 2026 | Over £50,000 |
| Phase 2 | 6 April 2027 | Over £30,000 |
| Phase 3 | 6 April 2028 | £20,000 or more |
HMRC will assess your qualifying income from your most recent Self Assessment tax return. For Phase 1, this means your 2024/25 return (due 31 January 2026). If your combined gross income from self-employment and UK property on that return exceeds £50,000, you are in scope.
Partnerships are currently deferred from MTD ITSA with no mandation date set. Limited companies are not affected, as MTD for Corporation Tax has no confirmed start date. If you only have PAYE employment income, MTD ITSA does not apply to you.
Before you start: what you need
Gather these before beginning the registration process:
- Your Government Gateway user ID and password (the one linked to your Self Assessment account)
- Your National Insurance number
- Your Unique Taxpayer Reference (UTR) for Self Assessment
- The start date of your sole trade or the date you began receiving property income
- Your chosen MTD-compatible software (you cannot complete sign-up without selecting one)
If you do not yet have a Government Gateway account linked to Self Assessment, you will need to create one first through the HMRC online services portal. Allow up to 10 working days if HMRC needs to post an activation code to your registered address.
Step-by-step: registering yourself
HMRC has published a sign-up service specifically for MTD ITSA. The process differs slightly depending on whether you have one income source or multiple sources.
Step 1: Go to the HMRC sign-up page
Visit the GOV.UK sign-up page for MTD Income Tax. Click “Sign up” and log in with your Government Gateway credentials. HMRC will match your Government Gateway ID to your Self Assessment record.
Step 2: Confirm your income sources
The system will ask you to confirm your income sources. You may see options for sole trader income, UK property income, or both. Select all that apply. Each income source you add will require its own set of quarterly updates, so if you have a sole trade and a rental property, you are committing to eight quarterly submissions per year (four per source).
Step 3: Select your accounting period
You will be asked to choose between standard tax year quarters (6 April to 5 July, 6 July to 5 October, and so on) or calendar quarters (1 April to 30 June, 1 July to 30 September, and so on). Both options have the same filing deadlines. If you are already registered for MTD for VAT, aligning your income tax quarters with your VAT quarters can simplify your workflow.
Step 4: Link your software
HMRC requires you to nominate the MTD-compatible software you will use for submissions. You do not need to have the software fully set up at this stage, but you do need to know which product you will use. HMRC maintains a list of recognised software on GOV.UK.
If you plan to use a spreadsheet with bridging software, select your bridging tool (such as VitalTax or 123 Sheets) as your nominated software. The spreadsheet itself is not the submission tool.
Step 5: Confirm and complete
Review your details and submit. HMRC will confirm your registration and you will receive an enrolment notification. From your chosen start date, you are required to keep digital records and submit quarterly updates through your software.
Worked example: Sarah registers for Phase 1
Sarah is a freelance graphic designer in Manchester with a sole trade turning over £62,000 per year. She also lets a one-bedroom flat that generates £9,600 in gross rent. Her qualifying income is £71,600 (the two figures combined), which puts her well above the Phase 1 threshold of £50,000.
Sarah already uses Xero for her sole trade bookkeeping. She logs into HMRC’s sign-up service with her Government Gateway account, confirms both income sources (sole trade and UK property), selects standard tax year quarters, and nominates Xero as her software. The process takes about 15 minutes.
From 6 April 2026, Sarah needs to submit quarterly updates for both her sole trade and her property income. Her first Q1 submissions (covering 6 April to 5 July) are due by 7 August 2026. Because she already uses Xero, the software handles the HMRC API connection automatically once she authorises it within the app.
How your accountant registers on your behalf
Most accountants will handle MTD registration for their clients. The process is slightly different when an agent signs up on your behalf.
Your accountant needs an Agent Services Account (ASA) with HMRC. This is separate from their existing agent credentials used for Self Assessment. If your accountant already files MTD VAT returns for clients, they will have an ASA in place. If not, they will need to create one through HMRC’s agent services portal.
Authorisation works through a digital handshake. Your accountant sends a request through their ASA, and you approve it through your Government Gateway account. If you already have a 64-8 agent authorisation in place for Self Assessment, your accountant may be able to sign you up for MTD ITSA without needing a new authorisation, though HMRC has indicated that MTD ITSA authorisation may require a separate digital link in some cases.
In practice, your accountant will handle the entire sign-up, choose your software, set your quarterly periods, and configure your submissions. You may need to log in once to approve the agent link, but beyond that, the process is managed for you.
When to register
HMRC has not set a hard registration deadline separate from the first quarterly filing deadline. However, common sense suggests registering well before 6 April 2026 if you are in Phase 1. You need time to set up your software, connect it to HMRC, and ensure your digital records are in order before your first quarter begins.
For Phase 1 taxpayers, registration is open now. We recommend completing it by March 2026 at the latest to avoid a last-minute rush. Phase 2 and Phase 3 taxpayers do not need to register until closer to their respective start dates, though voluntary early sign-up is possible if you want to get ahead.
What happens after registration
Once registered, your obligations begin from the start of your first quarterly period. For Phase 1, that is 6 April 2026. Your quarterly update deadlines are:
| Quarter | Period | Submission deadline |
|---|---|---|
| Q1 | 6 April to 5 July | 7 August |
| Q2 | 6 July to 5 October | 7 November |
| Q3 | 6 October to 5 January | 7 February |
| Q4 | 6 January to 5 April | 7 May |
After your fourth quarterly update, you will need to submit a Final Declaration by 31 January following the end of the tax year. The Final Declaration replaces the traditional Self Assessment tax return. It is where you confirm your total income, claim reliefs and allowances, and finalise your tax position for the year.
There is a soft landing for the 2026/27 tax year: HMRC will not issue penalty points for late quarterly updates in the first year. Late payment penalties still apply, but you will not accumulate points towards the £200 fixed penalty for missed quarterly deadlines during this initial period. From 2027/28 onwards, the full penalty points system applies.
Common registration questions
Can I register voluntarily if I am below the threshold?
Yes. HMRC allows voluntary sign-up for MTD ITSA even if your qualifying income is below the relevant threshold. Some taxpayers choose to do this to get familiar with the system before it becomes mandatory for them. There is no downside to voluntary participation other than the additional reporting obligation.
What if I have both self-employment and property income but only one is above the threshold?
The threshold applies to your combined qualifying income. If your sole trade earns £35,000 and your property earns £20,000, your qualifying income is £55,000. You are above the Phase 1 threshold and must register for MTD ITSA. Both income sources will need quarterly updates.
Do I need separate software for each income source?
Not necessarily. Most MTD-compatible software can handle multiple income sources within a single account. Xero, for example, supports both sole trade and property income through separate tracking categories. Some landlord-specific tools like Hammock or Landlord Studio focus only on property income, so if you use one of those alongside a general accounting package, you may end up with two submissions per quarter.
I already use Making Tax Digital for VAT. Do I need to register separately?
Yes. MTD for VAT and MTD for Income Tax are separate registrations with separate obligations. Being registered for MTD VAT does not automatically enrol you for MTD ITSA. You will need to go through the income tax sign-up process separately, though you can use the same software for both if it supports both MTD VAT and MTD ITSA submissions.
How Jack Ross can help
If you would prefer your accountant to handle MTD registration and ongoing quarterly submissions, Jack Ross Chartered Accountants can manage the entire process for you. As a Xero Gold Partner, we set up your software, connect it to HMRC, and submit your quarterly updates on your behalf. Get in touch to discuss your options ahead of April 2026.
