Quick answer: To sign up for MTD for Income Tax, confirm your mandation date, set up MTD-compatible software, register through HMRC’s sign-up service using your Government Gateway login, authorise your software, and then keep digital records from the start of the tax year.
The process isn’t difficult, but the order of steps matters and a few details trip people up. Here’s exactly how to do it.
What do you need before signing up for MTD?
- Your National Insurance number
- Your business or property letting start date
- A Government Gateway user ID and password (the same one you use for Self Assessment)
- MTD-compatible software ready to authorise
Not sure whether you even need to sign up yet? Check am I affected by Making Tax Digital? and confirm your band in MTD qualifying income explained.
Step 1: Confirm your mandation date
You only need to sign up once your qualifying income crosses the relevant threshold for the relevant tax year. Review the full schedule in our MTD deadlines and timeline guide. Signing up before you’re mandated is one of the most common avoidable mistakes.
Step 2: Choose and set up your software
Pick MTD-compatible software before you sign up with HMRC, because part of the process involves authorising it. If you’re moving off spreadsheets, follow switch spreadsheets to MTD software. Sole traders can compare options in best MTD software for sole traders.
Step 3: Sign up through HMRC
Go to HMRC’s MTD for Income Tax sign-up service, log in with your Government Gateway details, and follow the prompts to confirm your income sources and accounting period.
Step 4: Authorise your software
Connect your software to HMRC by granting permission through the secure authorisation flow. With CleanBooks AI this is a guided, one-time connection ,you click through and you’re linked.
Step 5: Start keeping digital records
From the start of your tax year, every transaction needs a digital record. Learn the rules in digital record keeping for HMRC.
What are the most common MTD sign-up mistakes?
- Signing up too early, before you’re actually mandated
- Using the wrong Government Gateway account
- Forgetting to keep digital records from day one of the tax year
- Choosing software after signing up, then struggling to authorise it
How CleanBooks AI simplifies the whole process
CleanBooks AI walks you through connecting to HMRC and your bank, then handles quarterly submissions for you. Once connected, Keeva keeps your records compliant in the background, and your live tax estimate starts updating immediately. See the full filing flow in our quarterly updates HMRC walkthrough.
Get set up in minutes. Start your CleanBooks AI account.
