How to sign up for Making Tax Digital
Making Tax Digital (MTD) is being introduced in the UK from 6 April 2026. For those impacted, this will mean a significant change to how you record and report your tax data to HMRC.
In this article, Tax Director, Liam Coulter, outlines who needs to register for MTD, when your registration should be submitted, and explains the MTD registration process.
What is Making Tax Digital (MTD)?
MTD is a new way to report self-employment and property income to HMRC and will be introduced in phases from 6 April 2026.
Who needs to register?
MTD will apply to self-employed individuals and landlords with gross qualifying income above the relevant threshold.
Your gross qualifying income is your combined self-employment and property income before expenses.
When do I need to register?
HMRC will check the income declared on your 2024/25 Tax Return. If your qualifying income is over £50,000, you will need to comply with MTD from 6 April 2026.
For example:
- If your 2024/25 tax return shows gross self-employment income of £53,000 you will need to comply with MTD from 6 April 2026.
- If your 2024/25 tax return shows gross rental income of £53,000 you will need to comply with MTD from 6 April 2026.
- If your 2024/25 tax return shows gross rental income of £23,000 and self-employment income of £30,000 you will need to comply with MTD from 6 April 2026 (as the combined total is more than the qualifying threshold of £50,000.
The limits will change in the following years, bringing more people into the scope of MTD. If your qualifying income is over £30,000, you will need to comply from April 2027. Those with qualifying income over £20,000 will need to comply from April 2028.
What if I become self-employed or begin leasing a property in 2025 – do I need to register?
If the sole trade or property income declared on your 2024/25 tax return relates to a new source of income which started in the year, the figure reported will need to be adjusted in order to compare 12 months’ worth of income against the MTD threshold.
For example, if you became self-employed on 6 October 2024 and earned gross income of £5000 per month, your 2024/25 Tax Return will show £30,000 of income for these 6 months, which is below the £50,000 threshold for April 2026. However, you will need to adjust this figure to get a full 12 months’ worth of adjusted income i.e. £5000 x 12 = £60,000. As you will then be over the threshold, you will need to comply with MTD from 6 April 2026.
What if my income comes from jointly owned property?
Your qualifying income includes only your share of the gross rents from any property you own jointly i.e. two spouses with a jointly owned property which generates £30,000 of rent annually will each have qualifying income from this source of £15,000 per year.
Will HMRC automatically register me for MTD?
No, HMRC will not register you automatically even if you meet the qualifying threshold on your 2024/25 tax return.
You can sign up for MTD using HMRC’s online registration facility. Alternatively, if you have an agent, they can complete the registration on your behalf.
Our Tax team can support with your registration, complete your MTD returns and take the stress out of this new regime. If you have any questions about Making Tax Digital, please contact our Tax Director, Liam Coulter.