How to Sign Up for Making Tax Digital: Quick Answers & 2026 Deadlines

Q: How do MTD late submission penalties work in 2026?

HMRC now operates a points-based penalty system for MTD compliance: - Every missed quarterly deadline results in 1 penalty point. - Once a sole trader accumulates 4 points, a financial fine of £200 is automatically triggered. - Subsequent missed deadlines will trigger further £200 penalties. - Points will reset back to zero only after a designated period of perfect, on-time compliance.

Jun 18

2 min read

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What is the deadline for signing up for Making Tax Digital in 2026?

For sole traders and landlords with an annual qualifying income over £50,000, Making Tax Digital (MTD) became mandatory on 6 April 2026. The absolute deadline to submit your first digital quarterly update to HMRC is 7 August 2026.

If your income is between £30,000 and £50,000, your mandatory start date is 6 April 2027.

How do I start signing up for Making Tax Digital?

To begin signing up for making tax digital, follow these four immediate steps:

Step 1: Select an HMRC-compatible software solution (such as GetBertie).
Step 2: Visit GOV.UK and sign into your Government Gateway account.
Step 3: Complete the MTD for Income Tax application form using your UTR and National Insurance number.
Step 4: Log into your software and approve the "HMRC Digital Link" authorization prompt.

Can I still use spreadsheets for Making Tax Digital?

Yes, but with strict conditions. Under HMRC’s 2026 regulations, you cannot simply maintain a spreadsheet and manually type the total figures into the HMRC website at the end of the year.

If you use spreadsheets, you must use specialized bridging software to upload the data digitally. Furthermore, every transaction must have a clear digital audit trail showing the transaction date, exact value, and correct tax category.

What information do I need before registering for MTD?

Before starting your online application, ensure you have the following information readily available to prevent system timeouts:

Your Government Gateway user ID and password.
Your Unique Taxpayer Reference (UTR) number.
Your National Insurance number.
The exact start date of your self-employment or property business.
Confirmation of your MTD-compatible software provider.

How do MTD late submission penalties work in 2026?

HMRC now operates a points-based penalty system for MTD compliance:

Every missed quarterly deadline results in 1 penalty point.
Once a sole trader accumulates 4 points, a financial fine of £200 is automatically triggered.
Subsequent missed deadlines will trigger further £200 penalties.
Points will reset back to zero only after a designated period of perfect, on-time compliance.

To bypass the manual tracking completely and ensure you never miss a 2026 deadline, learn how GetBertie automates your record creation entirely.