How to Sign Up for Making Tax Digital With HMRC (Step by Step)

You know you need to sign up for Making Tax Digital for Income Tax. But when you go looking for instructions, you hit a wall of jargon and circular HMRC links.

This guide cuts through the noise. Here's exactly how to sign up, step by step, with screenshots-worth of detail so you can get it done in one sitting.

Before You Start: What You'll Need

Gather these before you sit down. Nothing worse than getting halfway through and having to hunt for a UTR number.

• Government Gateway user ID and password — the login you use for Self Assessment. If you've filed a tax return online, you already have one.
• National Insurance number — on your payslip, P60, or any HMRC letter.
• Unique Taxpayer Reference (UTR) — the 10-digit number HMRC gave you when you registered for Self Assessment. Check old tax returns or your HMRC online account.
• MTD-compatible software — you'll need to choose this before you can complete sign-up. More on that in a moment.

Step 1: Choose Your MTD Software

This might seem backwards — why pick software before signing up? Because HMRC's sign-up process will ask you to confirm you have compatible software ready. You can't skip this step.

The good news: there are solid options at every price point. QuickBooks, FreeAgent, Xero, Sage, FreshBooks, and GoSimpleTax are all HMRC-recognised for MTD for Income Tax.

If you're not sure which to pick, compare MTD software here — we break down pricing, features, and who each one suits best.

Step 2: Check Whether You Need to Sign Up Yet

Not everyone is being brought in at once. HMRC is rolling this out in waves based on your gross income (that's total income before expenses):

• 6 April 2026 — sole traders and landlords earning over £50,000
• April 2027 — those earning over £30,000
• April 2028 — those earning over £20,000

If you're in the first wave (over £50k), you should sign up now. Don't wait until the deadline — you'll want time to get comfortable with the software and quarterly reporting before it becomes mandatory.

Even if you're in a later wave, there's nothing stopping you from signing up early. In fact, voluntary sign-up gives you a head start on the new system while the stakes are lower.

Step 3: Go to the HMRC Sign-Up Page

Head to GOV.UK and search for "sign up for Making Tax Digital for Income Tax", or go directly to the sign-up service. The URL changes occasionally, so searching is more reliable than bookmarking.

You'll see a green "Start now" button. Click it.

Step 4: Sign In With Government Gateway

You'll be asked to sign in with your Government Gateway credentials. This is the same login you use for Self Assessment online.

Don't have a Government Gateway account? You'll need to create one first. HMRC will send you a user ID by post (yes, actual post — allow 7-10 working days). This is why starting early matters.

Step 5: Confirm Your Details

HMRC will show you the details they hold — your name, UTR, National Insurance number, and business information. Check everything is correct.

If anything is wrong, you'll need to update it through your HMRC online account before continuing with MTD sign-up. Don't skip this — mismatched details cause problems later.

Step 6: Select Your Income Sources

You'll be asked what type of income you have:

• Self-employment — if you're a sole trader
• UK property income — if you're a landlord
• Both — if you have both types of income

Select all that apply. If you have multiple self-employments or properties, you'll add details for each one.

Step 7: Add Your Business Details

For each income source, you'll enter:

• Business name (or your own name if you trade as yourself)
• Business start date
• Business address
• What you do (your trade — e.g., "plumber", "graphic designer", "property rental")

For property income, you'll confirm the type of property (UK residential, furnished holiday lets, etc.).

Step 8: Confirm Your Software

HMRC will ask you to confirm that you have MTD-compatible software. This is a simple tick-box — they don't ask which software you're using at this stage.

But you do need to have it. Once you're signed up, you'll be expected to keep digital records and submit quarterly updates through that software. If you haven't chosen yet, see our comparison of the best MTD software options.

Step 9: Agree and Submit

Review your details one final time, then submit your sign-up. HMRC will confirm your registration, usually immediately on screen.

You'll also receive a confirmation email. Save it — it's your proof of sign-up if anything goes sideways later.

Step 10: Connect Your Software to HMRC

This is the bit people forget. Signing up with HMRC is only half the job. You also need to authorise your software to talk to HMRC on your behalf.

Open your chosen MTD software and look for the HMRC connection or MTD authorisation option. Each provider does it slightly differently, but the general process is:

1. Click "Connect to HMRC" (or similar) in your software
2. You'll be redirected to GOV.UK to sign in with Government Gateway
3. Grant the software permission to submit on your behalf
4. You're redirected back to the software — done

This authorisation lasts 18 months before you need to renew it. Your software will usually remind you.

What Happens After You Sign Up?

Once you're registered and your software is connected, your obligations under MTD for Income Tax are:

• Keep digital records — all income and expenses recorded in your software (not shoeboxes of receipts)
• Submit quarterly updates — four times a year, you send a summary of income and expenses to HMRC through your software
• End of Period Statement (EOPS) — a finalisation after your last quarterly update
• Final declaration — replaces the Self Assessment tax return, submitted by 31 January following the tax year

Your software handles the submission mechanics. You just need to keep your records up to date and hit the "submit" button each quarter.

Common Sign-Up Problems (and Fixes)

"I can't find the sign-up page"

HMRC moves things around. Search GOV.UK for "sign up MTD Income Tax" — the top result should be current.

"It says I'm not eligible"

Check your income threshold. If you're under £50k gross income, you won't be required until a later wave. You may still be able to sign up voluntarily — the sign-up page will tell you.

"My details don't match"

Your Government Gateway account, Self Assessment record, and MTD sign-up all need to agree. If your name or UTR doesn't match, update your details through your Personal Tax Account on GOV.UK first.

"I don't have a Government Gateway account"

Create one at GOV.UK. You'll need to verify your identity and wait for a user ID to arrive by post. Allow at least two weeks before the MTD deadline.

Don't Leave It Until the Last Minute

The single biggest mistake people make with MTD sign-up is waiting. Government Gateway delays, software learning curves, and the inevitable HMRC website crashes near deadlines all conspire against procrastinators.

If you're in the first wave (over £50k), sign up now. Get your software running. Submit a practice quarterly update. By the time 6 April 2026 arrives, you'll be calm while everyone else is panicking.

Not sure which software to go with? Compare the top MTD-compatible options here — we've tested them all so you don't have to.