How MTD for Income Tax works in practice

How to get started with MTD

Here’s how you can get up and running with MTD in no time.

Check whether you qualify and when you need to start

Confirm you’re a sole trader or landlord with qualifying income above the threshold for the specific tax year.

Pick your software

Choose HMRC-recognised software that works for you and your budget. Decide between an integrated tool or a spreadsheet with bridging software. Make sure it supports quarterly updates and a final declaration, in line with MTD requirements.

Sign up with HMRC

Sign in to your Government Gateway account and sign up for MTD for income tax. Have your Unique Taxpayer Reference (UTR), National Insurance number and business email to hand to speed up this process.

Connect your software

Authorise your chosen software to access your HMRC account. Link each income source (business and/or property), check your settings and test a sample entry before your first quarterly update to make sure everything’s working as it should.

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