How to Register for Making Tax Digital for Income Tax

Making Tax Digital for Income Tax is now live. From 6 April 2026, sole traders and landlords with qualifying income above £50,000 must use it by law. Your first quarterly update deadline is 7 August 2026, and the countdown has already started.

If you have not registered yet, you are not alone. Thousands of self-employed people and landlords across the UK are still going through the sign-up process. The good news is that you can still register now, set up your software, and stay fully compliant before your first submission deadline.

This guide explains everything you need to know. It covers who must register, what you need before you begin, how to register for Making Tax Digital for Income Tax, which deadlines you must meet, and the penalties if you miss them.

What is Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax, often called MTD ITSA or MTD for Income Tax, is HMRC’s system that replaces the traditional once-a-year Self Assessment tax return with quarterly digital updates.

Instead of gathering a full year of records every January, you now send a summary of your income and expenses every three months using MTD-compatible software. At the end of the tax year, you submit a final declaration to confirm your figures, claim any reliefs, and pay any tax you owe.

MTD for VAT has already been mandatory for most VAT-registered businesses since April 2022. MTD for Income Tax is the next step. It is now live for higher earners, and more taxpayers will join the system over the next two years.

The three core requirements under MTD ITSA are:

Who Needs to Register for MTD for Income Tax?

MTD Qualifying Income Threshold

MTD ITSA is rolling out in 3 phases. Your mandatory start date depends on your qualifying income. This is your total gross income (before expenses) from self-employment and/or UK property rental, as reported on a specific Self Assessment tax return.

Phase 1 is already live. If your qualifying income was above £50,000 on your 2024/25 Self Assessment return, you are now within the system or need to register straight away.

Phase 2 starts from April 2027 and will apply to those earning above £30,000. Phase 3 follows from April 2028, covering those earning above £20,000 and bringing hundreds of thousands more taxpayers into the digital regime.

What Counts as Qualifying Income?

Qualifying income is your gross income (before any expenses or deductions) from:

• Self-employment: sole trader income, freelancing, consulting, or any trade you run personally
• UK property rental income: residential and commercial

These two income sources are combined. If you earn £29,000 from freelancing and £22,000 from a rental property, your total qualifying income is £51,000. This places you clearly in Phase 1.

What does NOT count towards qualifying income:

• Employment income (PAYE salary)
• Dividends
• Pension income
• Savings interest
• Partnership income (partnerships are not yet in scope)

If you are not sure whether your income goes above the threshold, you can use HMRC’s eligibility checker. You can also use GoForma’s MTD for Income Tax assessment to quickly review your figures and confirm where you stand in just a few minutes.

Who is MTD ITSA For?

MTD for Income Tax currently applies to:

• Sole traders and freelancers
• UK residential and commercial landlords
• People with multiple self-employment sources
• People with a combination of self-employment and property income above the relevant threshold

Who is NOT Currently Required to Register for MTD ITSA?

Partnerships and LLPs are not yet in scope. HMRC plans to bring them into MTD at a later date, but has not confirmed when. If you are a partner and also earn income as a sole trader or from rental property above the threshold, that personal income still falls under MTD for Income Tax. The partnership income is assessed separately.

Limited companies are completely outside the scope of MTD ITSA. HMRC has confirmed there are no current plans to extend it to Corporation Tax.

If you only earn income through PAYE employment and have no qualifying self-employment or rental income, you do not need to register.

Missed the 6 April deadline? Here’s what to do now

If you were meant to register from 6 April 2026 and have not done it yet, take action now rather than waiting.

Right now, the soft-landing period works in your favour. HMRC has confirmed that taxpayers joining MTD for Income Tax in 2026/27 will not receive penalty points for late submission of their first four quarterly updates. This gives you some breathing room. However, it does not remove your obligation to keep digital records or submit your quarterly updates.

Your first quarterly update covers the period from 6 April to 5 July 2026, with a deadline of 7 August 2026. That is less than four months away. If you register now, set up your software this week, and start recording your income and expenses, you can still catch up and submit on time.

What about the gap? You will need to backfill those days once your software is set up. Most MTD platforms make this simple. You can enter transactions manually or import them from your bank. It is a small admin task, not a major issue.

The key step is to register and get started. GoForma can help you register with HMRC, set up the right software, and bring your records up to date quickly. Use GoForma’s MTD for Income Tax service and stay MTD for IT compliant.

What you need before you sign up for MTD for Income Tax

Before you go to HMRC’s sign-up service, make sure you have these four things ready.

1. Be registered for Self Assessment

You must already be registered for Self Assessment and have submitted at least one tax return in the last two years. HMRC uses this to check your identity and income history before allowing you to sign up for MTD. If you have never filed a Self Assessment return, you need to do that first. GoForma can help you file one.

2. Have your Government Gateway details ready

Use the same Government Gateway user ID and password you use for Self Assessment. If you cannot remember your login, recover it through GOV.UK before you begin. Trying to fix this halfway through slows everything down.

HMRC may also ask you to confirm your identity. Be ready to:

• Use a mobile app to match your face to your passport or driving licence
• Or answer security questions based on details HMRC holds, such as your passport, driving licence, credit file, or figures from a recent P60 or payslip

Keep these documents nearby before you start.

3. Choose and set up MTD-compatible software

This is where most people get stuck, but you cannot skip it. You cannot submit quarterly updates through the existing Self Assessment portal. You must use software that connects directly to HMRC.

You have two main options:

• Full cloud accounting software
  Tools like Xero, QuickBooks, FreeAgent, and Sage store your records and submit directly to HMRC. This works best if you are happy to manage everything online. GoForma includes FreeAgent at no extra cost with all accounting packages, so you can stay compliant without paying extra for software.
• Bridging software
  Tools like VitalTax, 123 Sheets, and Forbes MTD connect your spreadsheet to HMRC. You keep your records in Excel or Google Sheets, and the software submits the totals. This suits you if you want to keep your current setup.

Since you are already past 6 April, move quickly. Choose a tool, set it up, and start recording your income and expenses from the start of the tax year. GoForma can guide you to the fastest and simplest option based on your situation.

4. Know your income sources

HMRC will ask you to confirm all your income sources during sign-up. Prepare the following:

• The name of each sole trader business
• The date you started each business or rental activity
• Your Unique Taxpayer Reference (UTR)
• Your National Insurance number

If you have more than one income source, such as a consultancy, a side business, and a rental property, you must add each one separately. Make sure you include everything.

How to Register for Making Tax Digital for Income Tax

Step 1: Check your eligibility

‍Confirm your qualifying income from your 2024/25 Self Assessment return. If your combined gross income from self-employment and/or UK property rental is above £50,000, you need to register now. You can also use HMRC’s eligibility checker for a quick check.

Step 2: Set up your MTD software first

‍Choose your MTD-compatible software, sign up, and set it up with your business details before you go to HMRC. Add your income sources, connect your bank account if available, and enter any income and expenses from 6 April 2026 onwards. Setting up your software first means you can start using it straight away once HMRC confirms your registration.

Step 3: Go to HMRC’s MTD sign-up service

Go to “sign up for Making Tax Digital for Income Tax” service on GOV.UK. Sign in using your Government Gateway details, the same login you use for Self Assessment.

Step 4: Confirm your income sources

‍HMRC will show the income sources it has on record for you. Check each one carefully, confirm the details, and add anything missing. If you started a new income source in the last two tax years, you will need to provide the start date.

Step 5: Complete identity verification if asked

‍HMRC may ask you to complete an extra identity check. Follow the steps on screen. If you use the facial recognition app, keep your passport or driving licence ready. The process usually takes a few minutes.

Step 6: Receive your HMRC confirmation

HMRC will review your application and confirm you're signed up for MTD ITSA. You'll receive a confirmation message with your start date. From that point, you use your MTD software to submit quarterly updates instead of waiting until January to file a Self Assessment return.

Can My Accountant Register for MTD ITSA on My Behalf?

Yes, and for many people, this is the fastest and most reliable option. An authorised tax agent can complete the full registration with HMRC for you, once you give permission. HMRC also recommends speaking to your accountant before choosing software, so you both use a compatible system.

GoForma’s making tax digital accountants can handle the entire process for you. They will register you with HMRC, set up your software, backfill your records from 6 April, and manage your quarterly updates going forward. Get in touch with GoForma today and get everything sorted without the hassle.

MTD For Income Tax deadlines

Once you are registered, your main responsibility is to submit four quarterly updates each year through your MTD software, followed by a final declaration.

Your first deadline is 7 August 2026, which is less than four months away. If you register and set up your software in the next few weeks, you will have enough time to prepare and submit your Q1 update on time.

Quarterly updates are not four separate tax returns. They are a simple summary of your income and expenses for each period. You do not need to calculate your tax at this stage. That only happens when you submit your final declaration in January. The purpose of these updates is to keep HMRC informed about how your business is performing throughout the year.

After you submit your fourth quarterly update, you make any year-end adjustments, claim reliefs, and complete your final declaration by 31 January, similar to the current Self Assessment process.

Calendar quarter option
If you prefer to align your updates with calendar months instead of the tax year, some MTD software allows this. This means your periods can end on 31 March rather than 5 April. Check with your software provider before your first submission to see if this option is available.

MTD ITSA exemptions

Exemptions from MTD for Income Tax do exist, but they apply to a small number of taxpayers. If your qualifying income is above the threshold, you will usually need to comply. Still, it is worth checking whether you fall into any MTD exemption category.

Automatic exemptions (no application needed)

You are automatically exempt if your 2024/25 Self Assessment return shows that you acted as a trustee, a personal representative of a deceased person, or filed on behalf of a non-resident company.

If you also have your own self-employment or rental income outside these roles, that income may still fall under MTD.

Other automatic exemptions include:

• Lloyd’s underwriters
• Ministers of religion
• Those claiming Married Couples Allowance or Blind Persons Allowance
• Non-UK residents with overseas trading or property income

Digital exclusion exemptions (application required)

If it is genuinely not reasonable for you to use digital tools due to age, disability, a medical condition, limited internet access at home or work, or religious beliefs, you can apply for a digital exclusion exemption.

This is not automatic. You need to apply directly to HMRC.

You can:

• Call HMRC on 0300 200 3310
• Or write to HMRC with the heading: “Making Tax Digital for Income Tax digitally excluded application”

Include your personal details, UTR, and National Insurance number. Clearly explain why digital compliance is not practical for you. Supporting evidence will strengthen your application.

HMRC usually responds within 28 days. Continue preparing for MTD while you wait. If HMRC rejects your application, you must comply straight away. If you disagree with the decision, you have 30 days from the date of the letter to appeal.

Note: Using an accountant does not make you exempt

Hiring an accountant does not exempt you from MTD. If your accountant submits updates on your behalf using MTD software, you still need to keep proper digital records. The responsibility remains with you, not your accountant.

Temporary deferrals

Some taxpayers have a delayed start date of April 2027 instead of April 2026. This applies to certain non-residents and those who completed specific supplementary pages, such as SA109, in their 2024/25 return.

HMRC will confirm if this applies to you. If you are unsure, speak to your accountant before you register.

Penalties for Not Registering or Missing MTD Deadlines

MTD ITSA uses a points-based penalty system for late submissions:

• Each missed quarterly update or final declaration earns one penalty point
• Once you accumulate four penalty points, HMRC issues a £200 fine
• Penalty points expire after 12 months of full compliance

The soft-landing period: what it means for you right now

HMRC has introduced a soft-landing period for taxpayers joining MTD for Income Tax in 2026/27. You will not receive penalty points for submitting your first four quarterly updates late. HMRC has done this to give you time to adjust to quarterly reporting and get used to your software.

HMRC has made it clear that the soft-landing period does not remove your responsibilities. You still need to keep digital records and follow the quarterly update process. You must submit these updates before you can complete your final declaration. The only benefit is that late submissions during this period will not result in penalty points.

Late payment penalties are also changing under MTD for Income Tax. HMRC applies these on a tiered basis, starting from day 16 after your payment due date. This means paying your tax on time remains just as important as ever.

How GoForma Can Help You With MTD Registration

Registering for Making Tax Digital for Income Tax is manageable, but only if you follow the right steps. Choosing the wrong software, missing an income source, or failing to backfill your records from 6 April can all create problems later.

GoForma’s team of qualified MTD accountants are ready to support sole traders, landlords, freelancers, and contractors with MTD registration and filing. We handle every stage of MTD ITSA:

• MTD eligibility review - we check your income and confirm your exact obligations
• Software selection and setup - we match you with the right MTD software and configure up properly
• HMRC registration - we complete the MTD sign-up on your behalf
• Records catch-up - we bring your records up to date if you have not started from 6 April
• Quarterly updates - we submit your updates on time, every time
• Final declaration - we complete your year-end filing so you stay fully compliant by 31 January

Get MTD-compliant today with GoForma, check out our MTD for Income Tax service to get started!

Disclaimer: This article has been written and reviewed by GoForma's ACCA and AAT qualified accountants. It reflects HMRC's published guidance as of 15 April 2026. Tax rules can change, always check the latest guidance on GOV.UK or speak to a qualified tax adviser for advice specific to your circumstances.

FAQs on MTD for Income Tax Registration

Do I need to register for Making Tax Digital for Income Tax?

‍You must register if your combined gross income from self-employment and/or UK property exceeds the threshold. For April 2026, this is £50,000. If you fall below the threshold or qualify for an exemption, you do not need to register.

Who needs to sign up for MTD for Income Tax?

‍Sole traders and landlords with qualifying income above the threshold must sign up. The threshold is £50,000 from April 2026, dropping to £30,000 in 2027 and £20,000 in 2028.

What is the income threshold for MTD ITSA?

‍The threshold is based on gross income, not profit. It is £50,000 from April 2026, £30,000 from April 2027, and £20,000 from April 2028.

Does everyone have to use Making Tax Digital?

‍No. Only taxpayers above the threshold need to comply. Limited companies, partnerships, and PAYE-only employees are currently outside the scope.

How do I know if I need to register for MTD?

‍Check your 2024/25 Self Assessment return. Add your gross self-employment and rental income. If the total exceeds £50,000, you need to register.

Is MTD based on profit or turnover?

‍MTD is based on gross income (turnover), not profit. This means your total income before expenses determines whether you need to register.

How do I register for Making Tax Digital for Income Tax?

‍Set up MTD-compatible software first, then sign up through HMRC’s service on GOV.UK using your Government Gateway. Confirm your income sources and complete identity checks if required.

When do I need to register for MTD ITSA?

‍You should register before your first quarterly deadline. For April 2026 starters, this is 7 August 2026. Register early to allow time to set up software and records.

Does HMRC automatically register you for MTD?

No. HMRC sends letters to taxpayers who need to comply, but it will not register you automatically. You must go through the sign-up process yourself on GOV.UK, or ask your accountant to do it on your behalf.

Can an accountant register me for MTD?

‍Yes. An authorised accountant can complete the full registration process for you. They can also manage your software and ongoing submissions.

I missed the 6 April 2026 deadline. What should I do?

Register as soon as possible. HMRC's soft-landing period means you won't receive penalty points for late submission of your first four quarterly updates, but you still need to register, set up your software, and get your records in order from 6 April. Your first submission deadline is 7 August 2026, so you have time to get compliant if you act now.

Do I need software to register for MTD?

‍Yes. You must use MTD-compatible software to submit updates. HMRC’s standard Self Assessment portal does not support MTD submissions.

Can I use spreadsheets for MTD ITSA?

‍Yes, but you'll need bridging software to connect your spreadsheet to HMRC. Tools like VitalTax and 123 Sheets extract your summary figures from Excel or Google Sheets and submit them through HMRC's API. You cannot submit directly from a spreadsheet, and you cannot submit paper records.

What software works with Making Tax Digital?

‍Popular options include Xero, QuickBooks, FreeAgent, and Sage. Bridging tools like VitalTax and 123 Sheets also work if you prefer spreadsheets.

Do I need to set up software before registering?

‍Yes. Set up your software first so you can start recording transactions immediately after HMRC confirms your registration.

When is the first MTD quarterly deadline?

‍For April 2026 starters, the first deadline is 7 August 2026. This covers income and expenses from 6 April to 5 July.

How many submissions are required under MTD ITSA?

‍You submit four quarterly updates plus one final declaration each year. This means at least five submissions annually.

What happens if I miss the MTD registration deadline?

‍You should register as soon as possible. HMRC may not penalise late registration during the soft-landing period, but you still need to comply.

Who is exempt from Making Tax Digital?

‍Exemptions apply to a small group, including those digitally excluded or in specific roles like trustees. Limited companies and partnerships are also currently excluded.

What details do I need to sign up for MTD?

‍You need your Government Gateway login, UTR, National Insurance number, and details of your income sources, including start dates.

What if my income falls below the threshold after I've registered?

You remain within MTD unless your qualifying income drops to £20,000 or below for three consecutive years. If your income is close to the threshold and may fall below it, speak to your accountant about your options.

My income is below £50,000. Do I need to do anything right now?

You're not mandated to register for MTD ITSA yet. However, you can sign up voluntarily at any time. If your income is likely to cross £50,000 before the end of the 2025/26 tax year, it's worth speaking to an accountant sooner rather than later.

Resources:

https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step

https://www.gov.uk/guidance/choose-the-right-software-for-making-tax-digital-for-income-tax

https://www.tax.service.gov.uk/guidance/check-if-you-need-to-use-making-tax-digital-for-income-tax/start/about-this-guidance

https://www.gov.uk/guidance/find-out-if-you-can-get-an-exemption-from-making-tax-digital-for-income-tax

https://www.gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax‍