MTD Starts in April 2026 — What to Do If You Haven't Signed Up Yet

Making Tax Digital for Income Tax goes live on 6 April 2026. If you earn over £50,000 from self-employment or UK property and haven't signed up yet, don't panic — but do act now.

Step 1: Check if MTD applies to you

MTD applies if your gross income from self-employment and/or UK property exceeds £50,000. Employment income (PAYE salary) doesn't count towards this threshold. Check your most recent Self Assessment return for your qualifying income figure.

Step 2: Sign up for MTD on GOV.UK

You must sign up through your Government Gateway account before you can use any MTD software. Go to GOV.UK's MTD sign-up page and follow the steps. You'll need your Government Gateway user ID, National Insurance number, and your business start date.

HMRC may take a few days to process your sign-up, so don't leave it until April 5th.

Step 3: Choose your software

You need HMRC-compatible software to submit quarterly updates. If you already keep a spreadsheet, you don't need expensive accounting software — bridging software like Flonancial connects your existing spreadsheet to HMRC for free.

Step 4: Keep your records digital

From 6 April, your income and expenses records must be kept digitally. A spreadsheet counts. You don't need to change how you work — just make sure your records are in a digital format rather than a paper notebook.

What about the first deadline?

Your first quarterly submission covers 6 April to 5 July 2026, and is due by 7 August 2026. That gives you four months from the MTD start date to your first submission. Plenty of time.

Is there a grace period?

Yes. HMRC has confirmed that late submission penalties won't apply for the 2026/27 tax year. You won't be fined for late quarterly updates in the first year. However, late payment of tax still incurs interest and penalties as normal.

The bottom line

Sign up on GOV.UK now, choose your software, and keep your spreadsheet up to date. The process is simpler than it sounds, and the first-year grace period means there's no need to stress.