Making Tax Digital for Income Tax starts on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. If that is you, HMRC says you should sign up now. If your income is lower, check whether the £30,000 threshold catches you from April 2027.
One step of the sign-up process has changed. You may now need to prove your identity with a photo-ID check on your phone. Here is what to expect and what to have ready.
What changed at sign-up
HMRC used to let you confirm your identity by answering security questions. That option is gone from the MTD sign-up service.
The current GOV.UK guide to signing up for Making Tax Digital for Income Tax says: “You may be asked to provide further proof of your identity to use this service once you’ve signed in. If asked, you’ll need to use an app on your mobile phone to provide details of your current passport or driving licence.”
In plain terms: after you sign in, the service may ask for extra proof. If it does, you will use an app on your phone to capture details from your current passport or your photocard driving licence.
Who gets asked
Not everyone. The guidance says “you may be asked”, so the check applies to some sign-ups and not others. You cannot skip ahead of it: it happens after you have signed in to the service.
If you sign up through an agent, the agent handles the process for you, so confirm with them what they need from you.
What to have ready
Before you start, gather these.
Your Government Gateway user ID and password. You use the same login you got when you registered for Self Assessment.
Your current passport or photocard driving licence. The check needs details from one of these documents. Make sure it is in date.
A smartphone. You will use an app on your phone to provide the document details. Have it charged and nearby.
Your business details. You will need your business start date, or the date you started receiving property income, if that was within the last two tax years. Sole traders also need their business name, business address, and trade.
You must also be registered for Self Assessment and have submitted a tax return in the last two years. If you have not, sort that out first.
If the check does not work for you
Technology fails sometimes. If you have difficulties confirming your identity, the GOV.UK guidance says to contact HMRC for support. Do not keep retrying blindly. Get help so your sign-up is not held up.
Why sign up yourself rather than wait
From September 2026, HMRC started signing up anyone who needs MTD for the 2026 to 2027 tax year but has not signed up themselves. That process uses only the information HMRC already holds about you.
Signing up yourself is better. You can make sure your income sources are up to date and your latest circumstances are in the service from the start. For what happens once you are in, see the guide to using Making Tax Digital for Income Tax.
One reassurance: HMRC will not apply penalty points for late quarterly updates during the first year (2026 to 2027). Penalties still apply for late tax returns and for paying your tax bill late. Our MTD quarterly reporting guide explains what each update involves.
Frequently Asked Questions
If the service asks for extra proof of identity, you will need to use an app on your mobile phone to provide details of your current passport or driving licence.
No. GOV.UK says “you may be asked”, so only some people are asked. It happens after you sign in to the sign-up service.
The answer-security-questions option is no longer part of the MTD sign-up identity check. The current process uses the phone app and photo ID instead.
The GOV.UK guidance asks for one of these two documents. If you have difficulties confirming your identity, contact HMRC for support and they will advise you.
Yes. If you use an agent, they can sign you up for Making Tax Digital for Income Tax on your behalf.
Yes. You still need to submit a Self Assessment tax return for the tax year before you start using MTD. Once you are in the service, you send quarterly updates and file your return through compatible software. If your current tool cannot file, read our guide to switching to compatible software.
Disclaimer:
This guide provides general information about the Making Tax Digital for Income Tax sign-up process as of October 2026. Tax rules and government announcements can change. Nothing in this article is tax advice. Always consult with a qualified tax professional about your specific circumstances. That’s what we’re here for. In accordance with our normal practice we give this reference in good faith and in confidence, without legal liability on the part of the author or the company. The author assumes no responsibility or liability for any errors or omissions in the content of this site
The information provided in this blog is for general guidance and educational purposes only and does not constitute financial, tax, accounting or legal advice. iFiler, registered in England under Company Registration Number 15996173, has prepared this content to offer general insights into financial and taxation matters. Although we make every effort to ensure the accuracy and relevance of the information at the time of publication, we give no guarantee regarding completeness, accuracy or suitability for your specific circumstances.
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