Step-by-Step: How to Register for Making Tax Digital (MTD) as a Sole Trader

✅ What is MTD (Making Tax Digital)?

MTD is a government initiative requiring businesses and sole traders to keep digital records and submit their tax returns via compatible software. Paper and old-school spreadsheets won’t cut it anymore.

Learn more about MTD support for sole traders ➜

👷 Who Needs to Register?

If you're a sole trader and your self-employment income is above the threshold, MTD will apply to you.

🧾 What You’ll Need Before Registering

• Government Gateway login

• National Insurance number

• Self Assessment UTR (Unique Taxpayer Reference)

• MTD-compatible accounting software

See recommended MTD software ➜

📝 Step-by-Step: How to Register for MTD

1. Check if you’re eligible

If your income from self-employment or property is over £50,000, you’ll need to register by April 2026. (That drops to £30,000 in 2027.)

2. Get MTD-compatible software

Options include:

• QuickBooks Self-Employed

• FreeAgent (free with some NatWest and Mettle accounts)

• Xero Starter

Need help choosing software? ➜

3. Sign into Government Gateway

Visit: https://www.gov.uk/log-in-register-hmrc-online-services

4. Register for MTD

Register here:
👉 Sign up for MTD for Income Tax

5. Wait for confirmation

Once approved, begin using your software to keep records and submit returns.

Want us to handle it for you? Book a call ➜

😖 Common Pitfalls (And How to Avoid Them)

Mistake

Fix

Using old spreadsheets

Upgrade to MTD-compatible software

Waiting too long to register

Sign up early to avoid stress

Assuming your accountant does it all

You must keep digital records

Ignoring income threshold

Double-check your last tax return

💬 Need a Hand?

If you’d rather not go it alone, we help sole trader tradesmen across Greater Manchester stay compliant, save time, and stress less.

👉 Get in touch for a free MTD consultation ➜