With Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) now live for the 2026/27 tax year, tax professionals and taxpayers must move quickly to ensure compliance. HMRC mandates MTD for ITSA for sole traders and landlords whose qualifying income exceeds £50,000.
If you or your clients are asking, how do I sign up for MTD with HMRC?, this guide details the exact process, the identity verifications required, and the immediate deadlines you must meet.
The 5-Step MTD Sign-Up Process
HMRC requires taxpayers to follow a structured five-step process to transition into the MTD regime.
Step 1: Work out your qualifying income
You must first determine if you breach the mandation threshold. For the 2026/27 tax year, you must sign up if your total qualifying income from self-employment and property exceeds £50,000.
Step 2: Check if and when you need to use the service
Verify your timeline and ensure you do not qualify for an exemption. If you are exempt from MTD for Income Tax, you do not have to sign up. If you fall below the current threshold, you can still volunteer to sign up early to prepare for future phases.
Step 3: Get compatible software
HMRC does not provide software for MTD for Income Tax. You must acquire commercial software that works with the MTD system. You can choose an “all-in-one” bookkeeping product that keeps digital records and submits updates, or you can use “bridging software” to link existing spreadsheets to HMRC’s systems.
Step 4: Sign up for Making Tax Digital for Income Tax
You complete the actual registration through HMRC’s online portal. To sign up, you must already be registered for Self Assessment and have submitted a tax return within the last two years. Agents can complete this sign-up process on behalf of their clients.
Step 5: Authorise your software and use MTD
Once registered, you must digitally link your record-keeping software to HMRC. You will then use this software to store digital records, send quarterly updates, and submit your final tax return. Note that software authorisation must typically be refreshed every 18 months to maintain the secure link with HMRC.
What Information Do You Need to Sign Up?
When you navigate to the HMRC sign-up portal, you must provide specific credentials and business details. You will need the same Government Gateway user ID and password you originally used when registering for Self Assessment.
HMRC applies stringent identity checks during the MTD registration process. You may need to verify your identity by:
- Using a mobile app to match a live photo of your face to your passport or driving licence.
- Answering security questions based on information HMRC already holds about you (e.g., details from your passport, latest P60, recent payslips, or credit reference files).
You must also input your active sole trader and property details. You need to provide:
- The business start date, or the date you started receiving property income (crucial if started within the last two tax years to confirm the correct MTD start year).
- Your business name (the trading name used on your invoices).
- Your business address.
- The nature of your business or trade.
Important: If you operate multiple self-employment trades or property businesses, you must check each source of income in the online service and manually add any that are missing during the sign-up flow.
Urgent Compliance: The 2026/27 Deadlines
The MTD for ITSA start date was 6 April 2026. The deadline for the very first quarterly update (covering the period from 6 April to 5 July) is 7 August 2026.
Because today is 7 August 2026, taxpayers mandated for this phase who have not yet signed up or submitted their first update face immediate compliance urgency. You must use compatible software to send any missed quarterly updates for the year so far.
Fortunately, HMRC offers a transitional “soft landing” for penalties. If you are required to use MTD for Income Tax from 6 April 2026, HMRC will not apply penalty points for late quarterly updates during this first 2026 to 2027 tax year. However, standard penalties continue to apply for late tax returns or late tax payments.
Summary Table: MTD Sign-Up Requirements
| Phase / Element | Requirement | Provision / Data Needed | Outcome |
|---|---|---|---|
| Eligibility | Self Assessment History | Must have submitted a return in the last 2 years. | Permitted to sign up for MTD. |
| Credentials | Government Gateway | Existing ID and Password. | Access to the MTD enrolment service. |
| Identity Check | Document Verification | Passport, driving licence, P60, or app-based photo match. | Secure authentication of the taxpayer. |
| Business Data | Trade Details | Start date, business name, address, and trade nature. | Establishes the MTD reporting parameters. |
| Technology | Software | Must acquire compatible or bridging software (not provided by HMRC). | Enables digital record-keeping and API submissions. |
| Deadline | Q1 Update | 7 August 2026 (for the 6 April – 5 July quarter). | Software must be used to submit this update. |
| Enforcement | Penalties | Late quarterly updates in 2026/27. | Penalty points waived for the first year. |
Next steps for advisors: Ensure all clients breaching the £50,000 threshold have valid Government Gateway credentials and updated photo ID to clear the identity verification checks, and finalise their software authorisation immediately to meet today’s Q1 reporting deadline.
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