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Do I Need to Register for MTD

Find out what you need to know about MTD Registration

Unsure if you need to register for Making Tax Digital? This guide explains who needs to sign up for MTD and how to register for VAT or income tax with HMRC.

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Making Tax Digital (MTD) is being phased in across VAT, income tax, and corporation tax but not everyone needs to register right away. So how do you know if it applies to you?

In this guide, we answer the question: “Do I need to register for MTD?”, explain who’s required to sign up, and show you what to do next.

Who Needs to Register for MTD?

Whether or not you need to register depends on your business structure, income level, and tax type.

Here’s a quick overview:

Tax TypeRegistration Required If…
VATYou’re VAT-registered (mandatory for all VAT-registered businesses)
Income Tax (ITSA)You’re a sole trader or landlord earning over £50,000 (from April 2026), or £30,000 (from April 2027)
Corporation TaxNot yet mandatory – not expected in 2026

Voluntarily VAT-registered businesses must also register for MTD.

Do I Need to Register for MTD for VAT?

Yes if your business is VAT-registered, you’re required to follow Making Tax Digital (MTD) rules.

This means you must:

  • Keep digital VAT records (such as sales, purchases, and VAT calculations) in an approved digital format.
  • Submit VAT returns using MTD-compatible software spreadsheets alone aren’t enough unless they’re linked by “digital links” (such as bridging software).
  • Register with HMRC for MTD for VAT so your software can file returns directly.

If you’re newly VAT-registered, you’ll need to complete the MTD registration process before your first VAT return deadline.

Tips:

  • Don’t wait until your VAT return is due allow at least 5 working days after your last VAT return before signing up, otherwise you might end up filing late.
  • Check that your accounting software is on HMRC’s list of MTD-compatible software.
  • If you use spreadsheets, look into MTD bridging software to stay compliant.

Useful Resources:

Do I Need to Register for MTD for Income Tax?

You’ll need to register for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) if:

  • You’re a sole trader (self-employed individual) or a landlord, and
  • Your total annual gross income from self-employment and/or property is more than:
  • £50,000 from April 2026
  • £30,000 from April 2027

If your income is below the threshold, you won’t be required to join just yet though you can opt in voluntarily to get used to digital record-keeping early.

Tips:

  • Don’t wait until 2026 start getting familiar with digital record-keeping now. It’ll make the transition smoother.
  • Remember: gross income means your total income before expenses, not your profit.
  • If you have multiple sources of income (e.g. freelance work plus rental property), HMRC looks at your combined total.
  • Using spreadsheets won’t be enough on their own you’ll need MTD-compatible software or bridging tools.
  • Expect to send quarterly digital updates plus a final declaration instead of the single annual Self Assessment tax return.

Useful Resources:

Pro Tip: Even if you’re under the threshold, adopting digital record-keeping now can save time, reduce errors, and give you clearer insight into your finances helping you make better business decisions.

Do Limited Companies Need to Register for MTD?

According to HMRC’s own Transformation Roadmap, the Government has confirmed that it does not intend to proceed with Making Tax Digital for Corporation Tax. This marks a significant shift in policy.

So for now, limited companies do not need to register for MTD.

Tips to Prepare Anyway:

  • Go digital now – start using accounting software that’s already MTD-ready for VAT and Income Tax, as these providers are most likely to adapt quickly for Corporation Tax.
  • Keep all company records digitally, including invoices, receipts, and expense records. This will reduce disruption when the rules do come into force.
  • Stay informed – HMRC will provide at least 12 months’ notice before mandating MTD for Corporation Tax.
  • If you’re already filing CT600 Corporation Tax Returns online, the switch to MTD will mainly affect how records are kept and linked to submissions, not the fact that you file digitally.

Useful Resources:

Pro Tip: Businesses that get used to digital record-keeping now will find the MTD transition much easier and benefit from real-time insights into profitability and tax planning.

Complete VAT Returns for UK Businesses

 VAT Returns Service

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

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How Do I Know If I’m Already Registered?

How Do I Know If I’m Already Registered?

You’re considered registered for MTD if:

  • You’ve completed the sign-up process on HMRC’s website.
  • You’ve received a confirmation email from HMRC stating your business is now signed up to Making Tax Digital.
  • Your accounting software shows it’s connected to HMRC’s MTD system (often called “authorised” or “linked”).

Watch out for this common mistake:
If you’re using MTD-compatible software but haven’t completed the HMRC sign-up process, your VAT return won’t be accepted. Both steps HMRC registration and software setup must be in place.

Tips to Double-Check Your Status:

  • Log into your HMRC Business Tax Account if MTD is active, VAT will show as “Submit Returns through software” rather than through the old web form.
  • Check with your software provider most will show a status or connection message confirming that you’re linked to HMRC for MTD.
  • If in doubt, call the HMRC VAT helpline (0300 200 3700) to confirm.

Useful Resources:

Pro Tip: Keep your HMRC confirmation email safe accountants often need it when setting up software or troubleshooting connection issues.

How to Register for MTD

You can register directly through HMRC’s official sign-up pages:

  • Sign up for MTD for VAT
  • Sign up for MTD for Income Tax (ITSA)

When registering, you’ll need:

  • Your Government Gateway ID and password (or you can create one if you don’t already have it).
  • Your VAT number (for VAT registration) or Unique Taxpayer Reference (UTR) (for Income Tax).
  • Your business details (business name, address, contact details, accounting period).

Important:

  • Allow at least 5 working days after filing your last VAT return before signing up otherwise you risk filing errors.
  • You must complete both parts of the process:
  1. Register with HMRC.
  2. Link your MTD-compatible software to HMRC.

Tips for a Smooth Registration:

  • Check that your software is on HMRC’s official list of MTD-compatible software.
  • Keep your HMRC confirmation email safe it’s your proof of registration.
  • If you use an accountant, they can register on your behalf, but you must give them authorisation in your Government Gateway account.
  • Don’t leave registration until your return is due it may take a few days for HMRC to process.

Next Step:
For a full walkthrough (with screenshots and troubleshooting tips), see our detailed guide: How to Sign Up for MTD

How to Register for MTD

Need Help Registering for MTD?

At Accounting Wise, we make the registration process simple. We’ll:

  • Confirm whether MTD applies to your business (VAT, Self Assessment, or both)
  • Register you correctly with HMRC
  • Recommend and set up the right MTD-compliant software
  • Put systems in place for smooth digital filing and ongoing compliance

Don’t Risk Non-Compliance

If MTD applies to you and you’re not registered, your returns may be rejected, and you could face late submission penalties.

Get Started Today
Contact our team to check if MTD applies to your business and get set up the right way  with expert support every step of the way.

Need help with your accounts? Contact Accounting Wise Today!

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Register for Making Tax Digital FAQs

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Currently, VAT-registered businesses must register. From April 2026, many self-employed individuals and landlords with income over £50,000 will also need to join MTD for Income Tax.

You can sign up on HMRC’s official website using your Government Gateway ID. You’ll need your VAT number or Unique Taxpayer Reference (UTR), along with your business details.

Yes, HMRC requires MTD-compatible accounting software or bridging software to keep digital records and submit returns.

Yes, your accountant or tax agent can register and manage submissions on your behalf if you authorise them.

It usually takes up to 72 hours for HMRC to confirm your registration, but it can take longer during busy periods.

You risk penalties, as HMRC no longer accepts manual or non-MTD returns for businesses required to comply.

You’ll need your Government Gateway login, VAT number or UTR, business name, business address, and contact details.

Yes, but only for VAT at present. MTD for Corporation Tax has been delayed indefinitely and is not expected before April 2026.

You’ll have received a confirmation email from HMRC, and your accounting software will show a connection to HMRC’s MTD system.

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