How to Self‑Register for Making Tax Digital (MTD) and Why It Pays to Do It Early
Making Tax Digital (MTD) is one of the biggest changes to the UK tax system in decades. From April 2026, landlords and sole traders with income over £50,000 will need to keep digital records and submit quarterly updates to HMRC. The thresholds then drop to £30,000 in 2027 and £20,000 in 2028.
That means if you’re self‑employed or a landlord, MTD is coming your way sooner than you think. And the first step is self‑registering through your Government Gateway account.
What is the Government Gateway?
The Government Gateway is HMRC’s secure online portal. It’s where you log in to access tax services like Self Assessment, VAT, PAYE, and now MTD. If you don’t already have a Gateway ID, you’ll need to create one before you can register for MTD.
How to Self‑Register for MTD
1. Check if you’re eligible
• From April 2026, MTD applies to landlords and sole traders earning £50k+ in the 2024/25 tax year.
• Thresholds reduce in later years, so even if you’re under £50k now, it’s worth preparing.
2. Log in or create your Government Gateway account
• You’ll need your email address, National Insurance number, and some ID details.
• If you already file Self Assessment online, you likely have a Gateway ID.
3. Sign up for MTD for Income Tax (ITSA)
• HMRC will ask you to confirm your business type (sole trader or landlord).
• You’ll then be enrolled in the MTD system.
4. Choose MTD‑compatible software
• HMRC requires you to use approved software to keep digital records and send quarterly updates automatically.
• Popular options include Xero, QuickBooks, and FreeAgent.
5. Authorise your software through the Gateway
• This links your chosen software to HMRC so submissions can flow securely.
6. Start filing digitally
• Instead of one annual return, you’ll submit quarterly updates plus a final declaration each January.
Why Register Early?
• Avoid last‑minute stress: Setting up your Gateway account and software takes time. Doing it early means you won’t be scrambling in 2026.
• Get used to quarterly updates: Switching from one annual return to four updates a year is a big change. Practising early helps you adjust.
• Stay ahead of penalties: HMRC’s new penalty regime is stricter. Late submissions earn penalty points, and late payments can trigger fines as early as 15 days overdue. Early registration means you’re less likely to slip up.
• Better financial visibility: Quarterly reporting gives you a clearer picture of your income and tax position throughout the year.
• Peace of mind: Knowing you’re compliant before the deadline takes the pressure off.
Why Work With Us?
At Middlebrook Accountancy, we’re proud to be Xero Silver Champion Partners. That means we don’t just use Xero, we know it inside out and believe it is the best software package for MTD. Nick knows Xero like the back of his hand and has helped countless clients migrate, train, and thrive on the platform.
But we don’t stop at Xero. We also work with QuickBooks, FreeAgent and many other MTD-compliant software packages, giving you the flexibility to choose the software that best fits their business. Whether you’re already using one of these platforms or need advice on which to adopt, we’ll guide you through setup, training, and compliance with MTD.
Final Thoughts
MTD is designed to modernise the tax system, but it does mean more responsibility for landlords and sole traders. Self‑registering through your Government Gateway account is the first step and doing it early is the smartest move.
With Middlebrook Accountancy by your side, you’ll have the reassurance of experts who know the software inside out. If you’re unsure whether MTD applies to you, or you’d like help setting up your Gateway account and digital tools, give us a call for a friendly chat.