Do I Need to Register for Making Tax Digital? A Simple UK Checklist for 2026
Making Tax Digital (MTD) is no longer a distant change — it’s approaching fast, and many sole traders and landlords will be automatically moved onto the new system whether they’re ready or not.
We’re already seeing people caught out by misunderstandings around income thresholds, software requirements and registration timing. This guide cuts through the noise and helps you answer one key question:
Do I need to register for Making Tax Digital — and if so, when?
⚠️ Why This Matters More Than You Think
MTD isn’t just about filing tax digitally. Once you’re in:
- You must keep digital records
- You must submit quarterly updates
- Errors can compound over the year
- Fixing mistakes later often costs more
Getting this wrong doesn’t usually show up immediately — it shows up when HMRC writes to you.
What Is Making Tax Digital (MTD)?
Making Tax Digital is HMRC’s programme to replace annual tax returns with digital record-keeping and quarterly reporting, using approved software.
It already applies to VAT-registered businesses, and from April 2026, it will apply to many sole traders and landlords under Income Tax.
1️⃣ Who Must Register for Making Tax Digital
MTD for VAT
If you’re VAT-registered, you are already required to use MTD for VAT — regardless of turnover.
If you’re unsure whether your VAT setup is compliant, it’s worth checking. We regularly see businesses registered for VAT but still operating with non-compliant processes.
MTD for Income Tax (From April 2026)
You must register for MTD for Income Tax if all of the following apply:
- ✔ You are self-employed (sole trader) and/or a landlord
- ✔ You are registered for Self Assessment
- ✔ Your combined gross income from self-employment and property is over £50,000 per year
⚠️ Important: this is income before expenses, not profit. This is one of the most common (and costly) misunderstandings we see.
If you meet the criteria, MTD becomes mandatory from 6 April 2026.
2️⃣ What If Your Income Is Below £50,000?
MTD for Income Tax is being phased in:
- April 2026 → income over £50,000
- April 2027 → income over £30,000
- April 2028 → income over £20,000
If you’re below the current threshold, you don’t need to register yet — but you will in the future.
Many clients choose to prepare early so they’re not forced to change systems under pressure.
3️⃣ When You May Not Need to Register
You may be exempt if you are digitally excluded due to age, disability, or other genuine barriers to using digital systems.
These exemptions are not automatic — they must be applied for and approved by HMRC.
Assuming you’re exempt without confirmation can cause issues later.
4️⃣ Quick Checklist: Do You Need to Register?
Ask yourself:
- ✔ Are you self-employed or a landlord?
- ✔ Do you complete a Self Assessment tax return?
- ✔ Is your combined income over £50,000?
- ✔ Have HMRC contacted you about MTD?
👉 If the answer is “yes” to all of the above, you will need to register.
If you’re unsure — or sitting close to the threshold — this is exactly where professional advice saves time, stress and future cost.
5️⃣ Registering for MTD: What People Often Miss
On paper, registration looks straightforward:
- Choose MTD-compatible software
- Sign up via GOV.UK
- Link your records to HMRC
In reality, this is where many people run into problems:
- Choosing software that doesn’t suit their situation
- Incorrect setup leading to inaccurate quarterly updates
- Assuming quarterly submissions mean quarterly tax bills
- Losing track of deadlines
Once you’re registered, you’re committed — undoing mistakes later is far harder than setting things up correctly from the start.
6️⃣ Should You Get Help With MTD?
If your finances are simple and you’re confident with digital systems, MTD can be managed — but many people underestimate the ongoing workload.
We support sole traders, landlords and business owners across North London and Hertfordshire with MTD compliance, including:
- MTD eligibility checks
- Software setup and migration
- Quarterly submission management
- Ongoing compliance and support
As MTD deadlines approach, demand for this support is increasing — and capacity is not unlimited.
Bottom Line
Making Tax Digital is a major shift, not a minor admin change.
If you’re affected, the key is not waiting until HMRC forces the issue. Early advice gives you more options, better systems, and fewer surprises.
✅ Unsure if MTD applies to you — or when you need to act?
A 10-minute check now can save months of stress later.
👉 Request a free MTD check with AA&R Certified Accountants
👉 Avoid last-minute stress — and costly mistakes later
Book Your Free Consultation
Take Control of Your Finances Today
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