Skip to main content How do I sign up for MTD for Income Tax?
Making Tax Digital (MTD) for Income Tax is on its way for most self-employed people and landlords. The first wave of people are expected to comply with the new rules from 6th April 2026. So just how do you get signed up?
From speaking to our FreeAgent community, we know many people are confused about what they need to do. Signing up is a manual process - HMRC will not do it for you, and you won’t be able to use software (such as FreeAgent) to complete MTD for Income Tax until you have signed up with HMRC.
But don’t worry - this guide is here to help. Follow the steps below and you’ll be all set to get MTD done.
Note: Already being registered with HMRC for Self Assessment, or for MTD for VAT, does not automatically enrol you into MTD for Income Tax, nor does receiving a letter from HMRC informing you that you need to comply. Registering for MTD for Income Tax is a wholly separate process from any of these.
A quick recap: what is MTD for Income Tax?
MTD for Income Tax is a new way for self-employed business owners and landlords to keep their records and report their earnings to HMRC. For most self-employed individuals and landlords, MTD for Income Tax will replace your annual Self Assessment. Instead, you will have to:
- keep records of your business income and expenses in a digital format
- send quarterly updates of your business income and expenses to HMRC for each income stream (i.e. each self-employed business or total property income)
- finalise your income annually by submitting an end-of-year submission for each income stream and a final declaration covering all your income
The initiative is being introduced in three key phases.
- From April 2026, MTD for Income Tax will apply to most self-employed individuals and landlords with qualifying income over £50,000.
- From April 2027, the rules will extend to include most self-employed individuals and landlords with qualifying income over £30,000.
- From April 2028, the rules will apply to most self-employed individuals and landlords with qualifying income over £20,000.
How to sign up for MTD for Income Tax
1. Make sure you have MTD for Income Tax-compatible software
Unlike with Self Assessment, you will not be able to submit your MTD updates directly through HMRC’s own website. If you don’t already have MTD-compatible software to use to keep your books and file your submissions, you will have to sign up to one of the suppliers listed by HMRC here.
Good news! If you have FreeAgent, you are good to go. Our easy-to-use solution is HMRC recognised and ready to help you get MTD done. If you don’t already have FreeAgent, find out more about how to sign up here.
2. Gather the data you’ll need for HMRC’s sign-up process
In the online sign-up service, HMRC will ask you about your active sole trader and property income. This is the information you should have to hand before you start:
- your Government Gateway login details (These are the same ones you’ve previously used to log in for Self Assessment. They consist of a user ID and password.)
- your business start date or the date you started receiving property income (if this is within the last two tax years)
- the tax year you will start using Making Tax Digital for Income Tax
If you’re a sole trader, you’ll also need:
- your business name (this is the one you use on your invoices)
- your business address
- the nature of your business (your trade)
If you have more than one trade, or you have a trade and also property income, you’ll need to go through the sign-up process for each income stream individually. You can’t sign up for all your income streams in one go.
3. Go to HMRC’s online sign-up service
Once you have the information you need, go to this link. You should read the guidance and then click through the ‘Sign up now’ button at the bottom of the page. Use your Government Gateway details to sign in and follow the instructions.
4. Be prepared to prove your identity
You might be asked to provide further proof of your identity as part of the sign-up process. You can do this by:
- using the GOV.UK ID Check App on your mobile phone to match a photo of your face to your passport or driving licence, or
- answering questions about information HMRC already holds about your identity - for example, passport, credit reference, driving licence, Self Assessment, latest P60, or a recent payslip
5. Activate MTD for Income Tax in your software and link to HMRC
Once you’ve successfully signed up to MTD for Income Tax with HMRC, the final step to complete is to connect your compatible software to the HMRC system for MTD for Income Tax. If you’re using FreeAgent, you can find step-by-step instructions here.
Find out more about Making Tax Digital for Income Tax in our hub.
Disclaimer: The content included in this guide is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this guide.
