How to register for Making Tax Digital: a step-by-step guide

Registering for Making Tax Digital is straightforward once you have the right information in front of you. What trips most people up is starting the process before their software, HMRC login or authorisation is ready. This guide walks through both MTD for VAT and MTD for Income Tax in the order you should actually do them.

Before you start: what you need

Have these to hand:

• HMRC Government Gateway user ID and password for the business (not a personal one, unless you are a sole trader using your own).
• Your VAT registration number (for MTD for VAT) or UTR (for MTD for Income Tax).
• Business start date and, for companies, incorporation date.
• The email address you want HMRC to use for MTD correspondence.
• HMRC-compatible software already installed and set up (Xero, QuickBooks, FreeAgent, Sage, or bridging software for a spreadsheet).

If you use an accountant, they can register you as your agent. It is usually faster and avoids the "wrong login" mistakes that stall people for weeks.

How to register for MTD for VAT

Every VAT-registered business is already required to be on MTD for VAT, so this is only relevant if you have just registered for VAT for the first time or are moving from a legacy setup.

1. Sign in at gov.uk/vat-record-keeping using the business's Government Gateway credentials.
2. Confirm the VAT registration number and business type (sole trader, limited company, partnership).
3. Enter the email HMRC should use for MTD notifications and confirm it via the link they send.
4. Wait for HMRC's confirmation email. It usually arrives within 72 hours. Do not try to file a VAT return until you receive it.
5. Connect your accounting software to HMRC. In Xero, QuickBooks and similar, this is a one-time authorisation inside the VAT settings. You will be redirected to HMRC to grant access, then back into the software.
6. Test with your next return. The first submission through MTD confirms the setup is working.

Watch out for the timing. If you have a Direct Debit set up for VAT, sign up at least seven working days before your next return deadline or five working days after the previous one, otherwise HMRC may take payment twice or not at all.

How to register for MTD for Income Tax (from April 2026)

MTD for Income Tax applies to sole traders and landlords with combined gross income over £50,000 from 6 April 2026. HMRC's registration route opens in the months before your start date.

1. Confirm you are in scope. Add up your 2024/25 gross self-employment and property income. Over £50,000 puts you in from April 2026. See our guide to who MTD applies to.
2. Sign into your personal tax account at gov.uk with your Government Gateway ID. Sole traders use their personal login.
3. Follow the MTD for Income Tax sign-up flow. You will confirm your business and property income sources, your accounting period (most people use 6 April to 5 April), and your chosen software.
4. Authorise the software. As with VAT, you connect your chosen tool (Xero, QuickBooks, FreeAgent) to HMRC via a one-time authorisation.
5. Set up your quarterly rhythm. Your first quarter runs from your MTD start date. Block time each quarter to reconcile the books and submit the update.
6. Nominate an agent if you use an accountant. Your accountant will send you a link to authorise them; approve it inside your tax account so they can file on your behalf.

Common registration mistakes

• Using a personal Government Gateway login for a limited company (you need the company's own login).
• Signing up while a VAT Direct Debit is due, causing payment issues.
• Registering before software is chosen, then having to redo the software authorisation later.
• Forgetting to confirm the email verification link, which quietly stalls the whole process.
• Assuming an agent authorisation from previous years covers MTD. It does not; MTD needs its own authorisation.

If you would rather not do it yourself

We handle MTD registration, software setup and quarterly filings for our clients as part of the Making Tax Digital package. If you would like us to take it off your plate, book a call and we will walk through the setup.