How Do I Sign up for Making Tax Digital for Income Tax?

Why It Matters

Complying with MTD now avoids future penalties and ensures self‑employed taxpayers are ready for the lower £30k threshold, supporting a smoother digital tax ecosystem.

Key Takeaways

• Income over £50k must use Making Tax Digital now.
• Threshold drops to £30k for individuals starting April 2027.
• Sign up via GOV.UK using Government Gateway credentials.
• Choose compatible commercial software before completing the registration.
• Confirm all income sources; status must show “Completed” before submission.

Summary

The video walks viewers through registering for Making Tax Digital (MTD) for Income Tax, a mandatory online reporting system for self‑employment and property earnings. Currently, anyone earning more than £50,000 from these sources must enrol, with the threshold lowering to £30,000 in April 2027.

Key steps include visiting the GOV.UK portal, signing in with a Government Gateway ID, and confirming you have commercial software that meets MTD standards. The tutorial stresses checking your income sources, selecting the correct start date, and ensuring each source shows a “Completed” status before finalising the application.

The presenter highlights practical details such as adding UK property income, handling cases where the business began before the displayed date, and using the “Check details” function to resolve missing information. Screens may vary due to ongoing improvements, but the core flow remains consistent.

Early adoption helps taxpayers become familiar with digital filing, reduces the risk of late‑filing penalties, and aligns businesses with the UK’s broader digital tax strategy. By signing up now, self‑employed individuals and landlords can smooth the transition before the stricter 2027 threshold takes effect.

Original Description

It's a legal requirement from April 2026 for anyone with income above £50,000 from self-employment and property to use Making Tax Digital (MTD) for Income Tax. And from April 2027 for anyone with income above £30,000. This video gives you a step-by-step guide to signing yourself up to MTD. Find out:

• what you need before you start

• how to get started

• about adding and confirming your income sources

• about further guidance that's available.

This video is designed to help you understand the process so you can feel confident using the new service.

0:00 Introduction

0:11 Who needs to use Making Tax Digital

0:25 Why you should sign up early

0:42 What you need before you sign up

0:53 Finding the Sign-Up service on GOV.UK

1:11 Choosing compatible software

1:27 Selecting when to start using MTD

1:33 Adding self-employment income details

2:14 Adding property income details

2:45 Confirming details and completing sign up

3:15 Further help and support

To subscribe and visit the HMRCgovuk YouTube home page:

https://www.youtube.com/channel/UCX03s8aGilPqvp992meZd6w?sub_confirmation=1

Visit GOV.UK

https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords

https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax

https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step

HMRC is the UK’s tax, payments and customs authority. We collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.

You can use social media for help with general queries relating to any of HMRC’s products and services:

X: https://www.x.com/hmrc

Facebook: https://www.facebook.com/HMRC