How to register for Making Tax Digital for Income Tax (MTD ITSA)

If you’re a sole trader and you earn over £50,000, you’ll need to comply with Making Tax Digital for Income Tax Self Assessment (MTD ITSA) from April 2026.

This means you need to keep digital records of your business income and expenses and submit quarterly updates to HMRC using approved accounting software.

Instead of filing one single annual tax return (via self assessment), you’ll report your figures regularly throughout the year.

The good news is, you don’t need to sign up just yet unless you’re taking part in the pilot.

But if you want to get ahead – or you’re curious about how the sign-up process works – here’s a step-by-step guide.

When should I sign up?

MTD ITSA applies from:

• 6th April 2026 if your self-employed income is over £50,000
• 6th April 2027 if it’s between £30,000 and £50,000

If you earn under £30,000, you’re not currently required to join, but that could change in future. The government is still reviewing how MTD might apply to smaller businesses further down the line.

There’s more detail in our guide: MTD for Income Tax – who it affects, and when

What you’ll need to sign up

Before you can register for MTD ITSA, you’ll need:

• A Government Gateway user ID and password
• To be registered for Self Assessment
• A National Insurance number
• The name of the software you’ll use (e.g. Xero, FreeAgent, or bridging tools)

If you’re not already set up with HMRC, see: How to register as self-employed

Step-by-step: how to sign up

1. Check your eligibility
   You can currently only sign up if you’re a sole trader (not in a partnership) and your income is above the threshold.
2. Choose compatible software
   You’ll need to use HMRC-approved software to send your digital updates. Cloud accounting tools like Xero or FreeAgent (if you bank with NatWest or Mettle) are good options.
   See our guide to accounting software for sole traders
3. Sign in to your Government Gateway account
   Go to Sign up your business for Making Tax Digital for Income Tax (GOV.UK) and follow the prompts.
4. Enter your details
   This includes your name, business type, National Insurance number, accounting period dates, and the software you plan to use.
5. Wait for confirmation
   HMRC will confirm by email once you’re signed up. You’ll then need to start submitting updates through your chosen software.

Can my accountant register me?

Yes – accountants and tax agents can sign up and manage submissions on your behalf.

It is worth remembering that you are still responsible for recordkeeping, but they can help with setup and compliance.

Compare accountants for sole traders

Do you still need an accountant if you use Xero or FreeAgent?

Can I join early?

You can now voluntarily join the MTD pilot scheme, but it remains limited to straightforward cases. Many sole traders with complex income (e.g., property, multiple businesses) are not yet eligible.

Are you exempt from Making Tax Digital for Income Tax?

One final tip

Even if you’re not required to sign up yet, it’s worth getting used to MTD-compatible software before the deadline. It’ll help you keep better records and avoid a last-minute scramble in 2026.

Read our full guide to Making Tax Digital for the self-employed