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How to Sign Up for Making Tax Digital

A Step-by-Step Guide to Signing Up for MTD:

If you’re a business owner, landlord, or sole trader in the UK, you may be required to sign up for MTD (Making Tax Digital) HMRC’s new system for digital tax reporting. The process is straightforward, but it’s important to get it right.

This guide walks you through how to register for MTD for VAT or income tax (ITSA), what information you’ll need, and what happens after you’ve signed up.

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If you’re a business owner, sole trader, or landlord in the UK, you may now be required to sign up for MTD (Making Tax Digital) HMRC’s system for keeping digital tax records and filing returns online.

The sign-up process is straightforward, but it’s important to follow each step carefully to make sure you’re fully compliant and avoid any filing issues or penalties down the line.

This step-by-step guide explains:

  • How to register for MTD for VAT or Income Tax Self-Assessment (ITSA)
  • What information you’ll need before you start
  • What happens after you sign up and how to stay compliant

Whether you’re switching from spreadsheets, new to VAT, or getting ready for MTD for ITSA, this guide will help you register with confidence.

Who Needs to Sign Up for MTD?

You must register for Making Tax Digital (MTD) if you fall into any of the following groups:

  • VAT-registered businesses – MTD for VAT has been mandatory since April 2022, regardless of turnover. All VAT returns must now be filed through HMRC-recognised software.
  • Sole traders and landlords – from April 2026, those with annual gross income above £50,000 must join MTD for Income Tax Self Assessment (ITSA). From April 2027, the threshold will extend to those earning over £30,000.

Important: Even if you already use MTD-compatible software to submit returns, you may still need to formally sign up with HMRC so your software is properly linked to your tax account.

For step-by-step instructions, visit GOV.UK: Sign up for Making Tax Digital.

What You’ll Need to Sign Up

Before you start the registration process for Making Tax Digital, make sure you have the following information to hand:

  • Your Government Gateway user ID and password or set one up if you don’t have one yet.
  • Your business’s VAT registration number (for VAT) or Unique Taxpayer Reference (UTR) (for Income Tax Self Assessment).
  • The date you became VAT-registered or started trading as self-employed or a landlord.
  • Your accounting method cash basis or traditional accrual accounting.
  • A valid email address and up-to-date business contact details.

If you’re signing up on behalf of someone else – for example, if you’re an agent or accountant you’ll also need an Agent Services Account registered with HMRC.

Having these details ready makes the process quicker and helps avoid errors during sign-up.

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MTD Quick Links

What is Making Tax Digital
Do I Need to Register for Making Tax Digital?
Making Tax Digital Timeline and Rollout
How to Sign Up for Making Tax Digital
Making Tax Digital Deadlines and Dates
Making Tax Digital for VAT
MTD Income Tax (MTD for ITSA)
Making Tax Digital for Corporation Tax
Making Tax Digital Exemptions
Common MTD Mistakes and Avoiding Them
Making Tax Digital for Partnerships
Making Tax Digital for Limited Companies
Making Tax Digital for Sole Traders
Making Tax Digital for Landlords
Making Tax Digital Compliant Software
Making Tax Digital Bridging Software
How Accountants Can Help with MTD

Get 50% off our services for the first 6 months when you sign up to one of our Accounting Packages!

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Step-by-Step: How to Sign Up for MTD

Step 1: Choose MTD-Compliant Software

Before signing up, make sure you’re using HMRC-recognised MTD compliant software. Options include:

  • QuickBooks
  • Xero
  • FreeAgent
  • Sage

Check our MTD Compliant Software Guide to compare tools.

Step 2: Sign Up with HMRC

Visit the relevant page depending on your tax type:

Enter your login details and follow the prompts to submit:

  • Business or individual details
  • Software being used
  • VAT number or UTR
  • Confirmation of your accounting period

Make sure you don’t sign up too close to your filing deadline. HMRC recommends signing up at least 7 days before your VAT return is due.

Step 3: Wait for Confirmation

After signing up, you’ll receive an email from HMRC confirming that you’ve been successfully registered for Making Tax Digital. This usually takes 24–72 hours.

Once confirmed:

  • Your software should show that you’re connected to HMRC
  • You can submit your next return via MTD

Step 4: Submit Your Return via Software

Once enrolled, you can no longer use the old HMRC portal. All returns must go through your MTD software.

Do You Need to Re-Enrol Every Year?

No once you sign up for Making Tax Digital, you stay enrolled. There’s no need to register again each year.

However, to stay compliant you must:

  • Use MTD-compatible software that meets HMRC’s requirements
  • Submit each VAT return, income tax update, or Corporation Tax return on time through that software
  • Keep your required records in a digital format for the relevant tax period

Keeping your software up to date and your records accurate means you’ll continue to meet HMRC’s MTD rules without any extra re-enrolment steps.

What If You’re Exempt?

Some businesses and individuals may qualify for an exemption from Making Tax Digital if they can show that using digital tools is not practical. This may apply if you have:

  • An age, disability, or remote location that makes reliable internet access impossible (digital exclusion)
  • Religious beliefs that prevent the use of electronic communications
  • Serious IT limitations that make digital record-keeping unworkable

To claim an exemption, you must apply directly to HMRC and provide evidence to support your request.

For more details on who can apply and how it works, see our MTD Exemptions and Deferrals guide.

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Let Accounting Wise Handle It For You

At Accounting Wise, we can sign you up for Making Tax Digital and make sure your setup stays fully compliant with no disruption to your business.

We can help with:

  • MTD registration and linking your account with HMRC
  • Selecting and setting up the right MTD-compatible software
  • Filing your VAT, income tax, or future Corporation Tax returns accurately and on time
  • Ongoing compliance checks, reminders, and support whenever you need it

Ready to Register?

Avoid last-minute stress and make sure you’re MTD-ready now. Whether you’re signing up for VAT, Income Tax Self-Assessment, or Corporation Tax, we’ll guide you through each step.

Contact us today to get started with MTD registration and stay compliant with confidence.

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Signing Up to Making Tax Digital FAQs

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Currently, all VAT-registered businesses must sign up for MTD for VAT, regardless of turnover. From April 2026, MTD for Income Tax Self Assessment (ITSA) will apply to self-employed individuals and landlords with income over £50,000. Corporation Tax is not included, as the government has confirmed MTD for CT will not go ahead.

You can sign up for MTD for VAT through HMRC’s online service. The process involves:

  1. Logging into your Government Gateway account.
  2. Providing your VAT registration number and recent VAT return information.
  3. Authorising your chosen MTD-compatible software to communicate with HMRC.

Once registered, you’ll submit VAT returns exclusively through MTD-compliant software.

Yes. Since April 2022, MTD for VAT has been mandatory for all VAT-registered businesses, even those below the VAT threshold. If you’re VAT-registered, you must sign up and use MTD-compatible software, regardless of income.

MTD for ITSA starts in April 2026 for self-employed individuals and landlords earning over £50,000 annually. Those earning between £30,000 and £50,000 are expected to join in April 2027, though the exact details are still being finalised. HMRC will open the sign-up process closer to these dates.

When signing up, you’ll typically need:

  • Your Government Gateway user ID and password
  • Your VAT registration number (for VAT sign-up)
  • Your latest VAT return details
  • The MTD-compatible software you’ll be using (must be set up before signing up)

For ITSA, sign-up will likely require your Unique Taxpayer Reference (UTR) and National Insurance number.

HMRC publishes an official list of approved MTD software providers. Popular options include Xero, QuickBooks, Sage, FreeAgent, and The Balance App. Before signing up, check that your provider is on the HMRC-approved list and confirm it supports the specific MTD service (VAT or ITSA) that applies to you.

If you’re required to join MTD and don’t sign up, you risk:

  • Being unable to file your VAT returns
  • Penalties for late or missed submissions
  • Increased compliance issues with HMRC

Signing up and using compatible software ensures you stay compliant and avoid unnecessary fines.

Yes. At Accounting Wise, we help businesses and individuals register for MTD, choose the right software, and stay compliant with HMRC requirements. We can manage the entire sign-up and submission process on your behalf, giving you peace of mind that your tax obligations are handled correctly.

Switching to us for accounting services is easy

1 Choose Your Package

Select the accounting services that best suit your needs. Choose from our ready-made packages or build your own to see exactly how much you’ll be paying each month.

2 Sign up with Us

Once you’ve chosen your service level, just send over a few details using our quick sign-up form or give us a call to get started.

3 You’re ready to go

That’s it! We’ll get your accounting services set up, contact your previous accountant if needed, and begin the authorisation process with HMRC.

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