How to sign up for Making Tax Digital (MTD) in 2026

Making Tax Digital (MTD) is no longer a future change. For VAT-registered businesses, it’s already mandatory. And from April 2026, thousands of sole traders and landlords will need to follow new MTD for Income Tax rules.

If you’re wondering how to sign up for Making Tax Digital and whether it applies to you, here’s exactly what you need to know this year.

In this article:

• Who needs to sign up for Making Tax Digital in 2026
• How to register for MTD
• What you’ll need to sign up
• What changes under MTD for Income Tax
• Whether MTD is mandatory for your business
• MTD exemptions explained
• Why registering early makes sense
• How to simplify MTD with a Countingup business account

You must register for MTD depending on your income and business structure:

• VAT-registered businesses: MTD for VAT is already mandatory, regardless of turnover
• Sole traders and landlords earning over £50,000: must follow MTD for Income Tax from April 2026
• Those earning over £30,000: must comply from April 2027

MTD for Corporation Tax is not yet mandatory, but HM Revenue and Customs (HMRC) continues to develop the programme.

If you fall within these thresholds, you’ll need compatible software and digital record-keeping in place before your deadline. If you don’t fall into these thresholds, you don’t need to worry about MTD just yet.

Registering for MTD is straightforward, but you need to have MTD-compatible software before you begin.

You can’t submit returns through HMRC’s old online portal. You’ll need approved MTD software that:

• Keeps digital records
• Connects directly to HMRC
• Submits VAT returns or Income Tax updates digitally

Once your software is ready, you can sign up for:

• MTD for VAT
• MTD for Income Tax Self Assessment (ITSA)

You’ll authorise your software to interact with your HMRC account through your Government Gateway login (this is the account you originally signed up for Self Assessment with).

HMRC will confirm when you’re successfully signed up. After that, all returns must be submitted digitally through your choice of software.

Before registering, make sure you have everything you need to sign up ready. Including:

• Your Government Gateway login
• Your Unique Taxpayer Reference (UTR)
• Your National Insurance number (sole traders)
• Your company registration number (limited companies)
• Your VAT registration number (if VAT registered)
• Your business email and address
• MTD-compatible software

If you’re a sole trader or landlord preparing for MTD Income Tax in 2026, the biggest shift is quarterly reporting. Instead of submitting just one annual Self Assessment, you’ll need to:

• Keep digital records of income and expenses using MTD-compatible software
• Submit quarterly updates
• Submit a final year-end declaration (similar to what you submit for Self Assessment now)

We know what you’re thinking – it sounds like a lot of extra work, right? But moving to MTD-compatible software will take away most of the stress, and quarterly updates mean you’ll stay on top of your bookkeeping throughout the year — not just in January.

Staying on top of your bookkeeping throughout the year has many upsides. It’ll give you clearer visibility on how your business is operating, so you can make improvements to your business plan.

For example: if you notice a dip in your profits at the end of one quaurter, you can revisit your pricing strategy or pay closer attention to your expenses to improve profitability. With an annual Self Assessment, these trends can be harder to spot and rectify. For growing businesses, that insight is powerful.

Yes, it’s mandatory if you meet the thresholds outlined below.

MTD for Income Tax becomes mandatory:

• April 2026 for sole traders and landlords with income over £50,000
• April 2027 for sole traders with income over £30,000

If you’re below these thresholds, you don’t yet have to register but many businesses choose to move early to simplify their systems.

But if you’re a VAT-registered sole trader or limited company, MTD for VAT is already mandatory. This means you need MTD-compatible software to file your VAT returns – Countingup does just that. As well as a business current account, Countingup offers VAT filing directly from the app to HMRC, alongside VAT estimates and tax pots to help you save for your returns. Interested? Get started with a free 3 month trial.

As this is government, country-wide system change, almost everyone with self employment income will need to register to MTD. There are a few grounds where you may qualify for an MTD exemption but this isn’t guranteed. You may qualify for an MTD exemption if:

• You can’t use digital tools due to age or disability
• You don’t have internet access, likely due to the area you live in
• Your religious beliefs prevent technology use
• Your business is in insolvency proceedings

All exemptions must be approved by HMRC — they’re not automatic or a given. To apply for an MTD exemption, get in touch with HMRC to discuss your personal situation.

If your deadline is coming up this year in April or further down the line in April 2027, waiting until the last minute to register can create unnecessary pressure. But registering early gives you time to:

• Adjust to quarterly reporting so you know what you’re doing before it becomes mandatory
• Build consistent bookkeeping habits
• Know all deadlines so you can avoid penalties
• Understand your real-time tax position so you’re never caught short

MTD isn’t just a compliance requirement. When used properly, it improves financial oversight and reduces stress at the end of the tax year.