When and How You Must register for mtd for income tax

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Making Tax Digital (MTD) for Income Tax is a major change to the way self-employed people in the UK report their income and expenses to HMRC, and if you run your own business, work as a freelancer or earn money from property, it is important to understand whether the new rules apply to you and what you need to do to prepare.

Under the new system, eligible taxpayers must keep digital records, use compatible accounting software and send regular updates to HMRC throughout the tax year, rather than relying only on an annual Self Assessment tax return. The changes are being introduced gradually, which means that not everyone will need to start using Making Tax Digital at the same time.

In this guide, we explain the MTD rules for self-employed people, how to register for Making Tax Digital for Income Tax and what to expect from HMRC’s automatic enrolment process.

MTD rules self-employed income

The new MTD rules for self-employed income apply to individuals whose qualifying income from self-employment and property exceeds the relevant annual threshold. The rules are being introduced in stages, so the date you must start using the system depends on your income reported on your previous tax return.

The current timetable is as follows:

• From 6 April 2026: Self-employed people and landlords with qualifying income of more than £50,000 in the 2024/25 tax year must use Making Tax Digital for Income Tax, unless an exemption applies.
• From 6 April 2027: Those with qualifying income of more than £30,000 in the 2025/26 tax year will be required to join, unless exempt.
• From 6 April 2028: Those with qualifying income of more than £20,000 in the 2026/27 tax year will be required to join, unless exempt.

These thresholds are based on qualifying income before business expenses are deducted, rather than the profit you make after paying your business costs. For example, if you are a self-employed plumber with annual turnover of £55,000 and allowable expenses of £15,000, your business profit is £40,000, but your qualifying income is £55,000.

Qualifying income includes the gross income from your self-employment and property rental activities combined, where applicable, rather than your income from every source. Your employment salary, pension income and other sources of income do not count towards this threshold, although you may still need to report them when completing your tax return.

The new rules do not mean that everyone who is self-employed must immediately start using digital tax reporting, because people below the applicable threshold may not yet be required to join. However, it is sensible to review your income each year so that you have enough time to prepare if your business grows.

You can read our guide on whether you have to use Making Tax Digital to understand how the new system may affect your circumstances.

Are You Ready to register for mtd for income tax?

If you need to use Making Tax Digital for Income Tax, you must register through HMRC’s online service or arrange for your accountant or tax agent to complete the process on your behalf.

Before registering, you should check that you meet the eligibility requirements, confirm that you are required to use the system and choose accounting software that is compatible with Making Tax Digital for Income Tax. You will generally need to be registered for Self Assessment and have submitted a tax return within the previous two years to sign up.

The registration process involves signing in to the appropriate HMRC service, confirming your details and providing the information requested about your tax affairs. If an accountant manages your tax affairs, they can help you check your eligibility, select suitable software and complete the registration process.

Once you have registered, you will need to use compatible software to maintain digital records of your business income and expenses, send quarterly updates to HMRC and submit your end-of-year tax information through the MTD system.

It is important to understand that quarterly updates are not four separate tax returns, and you will not normally have to calculate and pay your tax bill every three months simply because you are using Making Tax Digital. Instead, the updates provide HMRC with summaries of your income and expenses during the year, while your final tax position is dealt with through the end-of-year process.

You should also check whether your existing accounting software supports the new requirements before you sign up, as not every bookkeeping application will provide all the functions you need.

For more information, read our guide on how to set up Making Tax Digital, which explains the preparation steps in more detail.

What to Expect from hmrc mtd auto enrollment

HMRC is introducing an automatic enrolment process for taxpayers who are required to use Making Tax Digital for Income Tax but have not signed up themselves.

From September 2026, HMRC will begin signing up eligible individuals in stages for the 2026/27 tax year if its records show that their qualifying income exceeded £50,000 in the 2024/25 tax year and they have not already signed up.

This means that some self-employed people may receive a notification from HMRC informing them that they have been signed up for Making Tax Digital. The process is intended to help bring eligible taxpayers into the new system, but receiving a notification does not remove the need to understand the rules or prepare for the reporting requirements.

If HMRC contacts you, read the notification carefully and follow the instructions provided. You should check whether the information HMRC holds about your income and circumstances is correct, make sure you have suitable software and confirm that you understand when your quarterly updates and end-of-year submissions are due.

If you believe that you have been included incorrectly, or you think you qualify for an exemption, you should review the relevant HMRC guidance and contact HMRC if necessary. Do not simply ignore the notification, as you may still have obligations under the new system.

Automatic enrolment also does not mean that every self-employed person will be signed up immediately. The process applies to people who meet the relevant requirements, and the timetable depends on their qualifying income and individual circumstances.

You can find the official guidance on what to do if HMRC has signed you up for Making Tax Digital for Income Tax.

What records will self-employed people need to keep?

Under Making Tax Digital for Income Tax, affected taxpayers must keep digital records of their business income and expenses using compatible software, which means that you will need a reliable way to record sales, payments received and business costs throughout the year.

For example, if you are a self-employed electrician, you may need to record payments from customers, materials purchased for jobs, business insurance, tools and other allowable expenses. Keeping these records up to date throughout the year can make it easier to prepare quarterly updates and check your business performance.

You may still be able to use spreadsheets as part of your record-keeping process, provided your overall system meets HMRC’s digital requirements and uses compatible software where necessary to submit information.

You should also keep supporting documents such as invoices, receipts and other evidence of business transactions, as these can help you explain the figures in your records if questions arise later.

If you are unsure what counts as a digital record, read our article on what counts as digital records for MTD.

Do self-employed people still need to submit a Self Assessment tax return?

Making Tax Digital for Income Tax changes how affected taxpayers keep records and report information during the year, but it does not mean that the annual tax return simply disappears.

If you join MTD, you will generally need to send quarterly updates and complete the required end-of-year submission through compatible software. You must also report other relevant income and claim applicable reliefs and allowances as part of finalising your tax position.

Your normal tax payment deadline will generally remain 31 January following the end of the tax year. For example, the tax payment deadline for the 2026/27 tax year will be 31 January 2028.

You should therefore continue to plan for your annual tax bill, even if you are sending information to HMRC throughout the year.

How can an accountant help with Making Tax Digital?

Making Tax Digital introduces additional record-keeping and reporting responsibilities, which can be challenging for self-employed people who are already busy running their businesses.

An accountant can help you check whether the rules apply to you, register for the service where authorised, choose compatible software and organise your bookkeeping so that your income and expenses are recorded correctly.

They can also help you review your quarterly figures, identify missing records and prepare your end-of-year tax information, while explaining how the changes affect your existing tax responsibilities.

If you already work with an accountant, it is worth discussing Making Tax Digital well before your start date so that you have enough time to prepare. If you do not currently use an accountant, you may wish to consider professional support if you are unsure how to manage the new reporting requirements.

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